The government today approved the re-introduction of the new Companies Bill which will replace the old law enacted in 1956.
The Cabinet cleared re-introduction of the Bill, which lapsed following the dissolution of earlier Lok Sabha without any changes.
"The government decided to introduce the Companies Bill, 2008, as the Companies Bill, 2009, without any change," a Corporate Affairs Ministry official said.
The new Bill seeks to modify the company law in accordance with the changes in the global and domestic economy.
The proposed law which would be much thiner and comprehensive than the existing Companies Act, 1956, will also provide for formation of one person company.
It also seeks to deal with the procedural aspects from substantive law and provide greater flexibility to adapt to changing economic and technical environment.
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