C
ompanies Act 1956 along with its various amend-
ments is a very comprehensive act. An analysis of
the scheme of the Act clearly reveals that it is primarily
meant to ensure protection of the interests of various
stake holders and providing a comprehensive dispute
resolution mechanism. Risk management from fraud
and abuse of position by the directors, management
and controlling share holders is in built in the scheme.
The Companies Act contains legal provisions regarding
risk management against fraud and abuse right from the
stage of issue of shares and debentures (Part III sections
55 to 60 of the Act). Various safeguards are provided
and restrictions imposed in the acceptance of Public de-
posits by companies (Sections 58A, 58AA, 58AAA and ...