Major revamp expected in Companies Act

The government is going ahead with a ‘‘complete revision’’ of the Companies Act, enacted in 1956, to remove several outdated clauses and tune it to the current globalised economic conditions and realities.

‘‘With about 796 provisions, the Companies Act is probably the biggest Act in the world. However, many clauses in the existing Act are outdated, irrelevant and not required today as the priorities at the time when it was drafted were different. Hence, it requires a complete revision,’’ Company Affairs Minister Prem Chand Gupta said.

He said the government was looking at downsizing the number of clauses in the Act to below 300, adding that possibilities were open for major amendments or a new Act altogether.