Corporate law, or company law, regulates the interactions between various stakeholders in the corporate sector, including shareholders, directors, employees, creditors, and the community. In India, several key legislations shape the corporate legal landscape:

Employment and Labour Law (2019)

This law codifies various aspects of labor regulations, focusing on wages, bonuses, and employment conditions.

• Key Provisions:
  • Standardizes wage payment methods and schedules.
  • Mandates timely disbursement of wages and bonuses.
  • Addresses employment conditions to protect worker rights.

Corporate Social Responsibility (CSR) – 2014

The CSR law mandates companies to allocate a portion of their profits towards social welfare activities.

• Key Provisions:
  • Companies with a net worth above a certain threshold must spend at least 2% of their average net profit on CSR activities.
  • Focus areas include education, poverty eradication, and gender equality.
  • Requires detailed reporting on CSR activities in annual reports.

Companies (Amendment) Acts 2017 and 2013

These amendments aim to enhance corporate governance and streamline compliance processes.

• Key Provisions:
  • Simplifies the incorporation process for companies.
  • Introduces stringent penalties for non-compliance.
  • Enhances the role and responsibilities of directors and auditors.

Securities and Insurance Laws (Amendment and Validation) Act, 2010

This act amends various laws to improve the regulation of the securities and insurance sectors.

• Key Provisions:
  • Amends the Reserve Bank of India Act, Insurance Act, and SEBI Act.
  • Strengthens regulatory frameworks to protect investors.
  • Introduces measures to prevent fraudulent activities.

Tyre Corporation of India Limited (Disinvestment of Ownership) Act, 2007

Facilitates the disinvestment of government ownership in the Tyre Corporation of India.

• Key Provisions:
  • Outlines procedures for the sale of government stakes.
  • Ensures transparency in the disinvestment process.
  • Aims to improve efficiency and competitiveness.

Companies (Amendment) Act, 2006

This act requires directors to obtain a Director Identification Number (DIN) for appointment.

• Key Provisions:
  • Mandates DIN for all directors.
  • Helps maintain a database of directors.
  • Aims to enhance corporate transparency.

Prevention of Money-Laundering (Amendment) Act, 2005

Strengthens measures to combat money laundering and related financial crimes.

• Key Provisions:
  • Expands the definition of money laundering.
  • Enhances the powers of investigative agencies.
  • Introduces stricter penalties for offenders.

Special Economic Zones Act, 2005

Establishes Special Economic Zones (SEZs) to promote exports and economic growth.

• Key Provisions:
  • Provides tax incentives for businesses operating in SEZs.
  • Simplifies regulatory procedures.
  • Encourages foreign and domestic investment.

Prevention of Money Laundering Act, 2002

Provides a legal framework to combat money laundering activities.

• Key Provisions:
  • Establishes the Financial Intelligence Unit (FIU) for monitoring.
  • Mandates reporting of suspicious transactions by financial institutions.
  • Imposes penalties for non-compliance.

State Financial Corporations (Amendment) Act, 2000

Amends the 1951 Act to enhance the functionality of State Financial Corporations.

• Key Provisions:
  • Expands the scope of operations for State Financial Corporations.
  • Improves governance structures.
  • Provides additional financial support mechanisms.

National Securities and Depositories Limited Byelaws, 1996

Implements regulations under the Depository Act to ensure smooth securities trading.

• Key Provisions:
  • Regulates the functioning of depositories.
  • Ensures secure and efficient transfer of securities.
  • Protects the interests of investors.

Depositories Act, 1996

Regulates depositories to facilitate the electronic transfer of securities.

• Key Provisions:
  • Simplifies the process of securities dematerialization.
  • Reduces risks associated with physical securities.
  • Enhances market efficiency.

Foreign Trade (Development and Regulation) Act, 1992

Regulates and promotes foreign trade by facilitating imports and exports.

• Key Provisions:
  • Establishes the Directorate General of Foreign Trade (DGFT).
  • Simplifies import-export procedures.
  • Provides incentives for export promotion.

Company Law Board Regulations, 1991

Grants specific powers to the Company Law Board under the Companies Act, 1956.

• Key Provisions:
  • Empowers the Company Law Board to adjudicate disputes.
  • Facilitates corporate restructuring.
  • Ensures compliance with corporate governance standards.

Company Secretaries Act, 1980

Regulates the profession of Company Secretaries in India.

• Key Provisions:
  • Establishes the Institute of Company Secretaries of India (ICSI).
  • Defines the roles and responsibilities of Company Secretaries.
  • Ensures professional standards and ethics.

Sick Industrial Companies Act, 1985

Aims to detect and revive sick companies to prevent industrial sickness.

• Key Provisions:
  • Establishes the Board for Industrial and Financial Reconstruction (BIFR).
  • Provides a framework for the rehabilitation of sick companies.
  • Ensures timely intervention to prevent company failures.

Hire-Purchase Act, 1972

Regulates hire-purchase transactions to protect the interests of buyers and curb abuses.

• Key Provisions:
  • Defines the rights and obligations of parties in hire-purchase agreements.
  • Provides a legal framework for dispute resolution.
  • Ensures transparency in transaction terms.

Companies (Foreign Interests) Act, 1918

Controls foreign interests in Indian companies, requiring government sanction for certain actions.

• Key Provisions:
  • Regulates foreign investments in Indian companies.
  • Ensures national security and economic stability.
  • Requires government approval for significant foreign stakes.

Companies (Donations to National Funds) Act, 1951

Allows companies to make donations to national funds for public welfare.

• Key Provisions:
  • Permits donations to funds established for national purposes.
  • Encourages corporate participation in social causes.
  • Requires disclosure of donations in financial statements.

Indian Contract Act, 1872

Defines legally enforceable agreements, laying the foundation for contractual relationships.

• Key Provisions:
  • Outlines the essentials of a valid contract.
  • Specifies the remedies for breach of contract.
  • Defines various types of contracts and their enforceability.

Partnership Act, 1932

Defines and regulates partnerships in business, providing a legal framework for their operation.

• Key Provisions:
  • Defines the rights and duties of partners.
  • Regulates the formation and dissolution of partnerships.
  • Provides mechanisms for dispute resolution among partners.

Securities Contract (Regulation) Act, 1956

Regulates securities trading to prevent unfair practices and protect investor interests.

• Key Provisions:
  • Establishes regulations for stock exchanges.
  • Prohibits fraudulent and unfair trade practices.
  • Ensures transparency and fairness in securities markets.

Sale of Goods Act, 1930

Regulates the sale of goods, providing a framework for commercial transactions.

• Key Provisions:
  • Defines the terms and conditions of sale contracts.
  • Outlines the rights and duties of buyers and sellers.
  • Provides remedies for breach of contract.

Tea Act, 1953

Controls and promotes the tea industry, focusing on regulation and export promotion.

• Key Provisions:
  • Establishes the Tea Board of India.
  • Regulates the cultivation, processing, and sale of tea.
  • Promotes the export of Indian tea.

State Financial Corporation Act, 1951

Establishes State Financial Corporations to aid in economic development and provide financial support to industries.

• Key Provisions:
  • Defines the structure and functions of State Financial Corporations.
  • Provides financial assistance to small and medium enterprises.
  • Encourages industrial growth and regional development.