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Companies Bill Policy Brief

Companies Act is one of the important and over-arching pre-conditions for enabling corporate governance. It is the legislation that governs companies from their very incorporation into operation and exit. The Act encourages transparency and high standards of corporate governance as appropriate, given the significant role of companies within the social and economic life of the nation. The Act attempts to enhance governance and bring about improved responses from companies. However, since the Act is extensive 200-page legislation, a potential entrepreneur might not fully comprehend the technicalities and compliances regarding the same. Therefore, it is an absolute necessity that the size of the Act is reviewed and reduced further by eliminating clauses that only adds to non-compliance, in part of entrepreneurs.

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