The President of India, Pranab Mukherjee on 29 August 2013 gave his assent to the Companies Bill 2013. With this, the Companies Bill will now become the law and replace the 60-years-old regulations which governed the country till now. The new bill provides changes to the functioning of the companies’ operation. The Companies Bill 2013 will replace the Companies Act 1956.
The Companies Act of 1956 replaced the first Companies Act that was created in 1919 (the pre-independent India). The Act of 1956 has been amended 25 times in all these years since its formation.
The Companies Bill 2012 was passed in Rajya Sabha on 8 August 2013 (during the monsoon session of the parliament). Earlier, the bill was passed by the Lok Sabha on 18 December 2012. With the President’s assent, the Companies Bill 2012 became the Companies Act, 2013 (New Act).
Lawmaking Procedure in India
The legislative proposals are brought before either the Lok Sabha or the Rajya Sabha in the form of a bill. The bill is actually a draft of the legislative proposal. After being passed by both the Houses of the Parliament, the Bill is sent to the President of India for assent. After receiving the assent from the President of India, a bill becomes an Act of the Parliament.