Objectives of the Companies Act' 2013 | Company Law Notes for BCom, BBA and MBA | CBCS Pattern

Objectives of the Companies Act ' 2013

Company Law Notes for B.Com, BBA and MBA

The main objectives of the companies Act of 2013 are:

1) To protect the interests of the investors by furnishing fair and accurate information in the prospectus.

2) To promote transparency and high standards of corporate governance.

3) To put strict restrictions on insider trading activities.

4) To ensure full and fair disclosure of the affairs of the companies in their published annual accounts.

5) To enforce proper performance of duties by persons responsible for the management of Companies.

6) To provide for the establishment of an appropriate authority for the administration of the Companies Act.

7) To make compliance requirements more effective and implement time bound approvals.

8) To facilitate ease of doing business.

9) To protect and widen the protection given to investors and creditors of the company.

10) To prevent misconduct and malpractices on the part of company's management and abuse of power vested in them.

11) To improve the corporate laws standard of our country to global standards.

12) To promote use of technology by making mandatory maintenance of books of accounts in electronic form.

13) To enhance the economy of the country by encouraging entrepreneurship.

14) To promote corporate social responsibility (CSR) activities undertaken by the Companies.

15) To ensure that the activities of the company are carried on nut only in the interests of those directly concerned with them but also in furtherance of the economic and social policy (i.e., the socialistic pattern of society) of the country.