
Contents
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Introduction Introduction
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The Colonial Inheritance The Colonial Inheritance
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How the Inheritance Changed (1947–1970) How the Inheritance Changed (1947–1970)
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Taking On the Managing Agency (1952–1970) Taking On the Managing Agency (1952–1970)
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New Objectives (1965/70–1992) New Objectives (1965/70–1992)
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Regulating Monopolies Regulating Monopolies
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Insolvency and the Government as a Supermanager Insolvency and the Government as a Supermanager
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The Road to Reform after 1992 The Road to Reform after 1992
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The 1993 Companies Bill and the Competition Act 2002 The 1993 Companies Bill and the Competition Act 2002
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Insolvency: Toward the Bankruptcy Code of 2016 Insolvency: Toward the Bankruptcy Code of 2016
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Corporate Governance: Toward Voluntary Guidelines 2009 Corporate Governance: Toward Voluntary Guidelines 2009
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Financial Market: Incomplete Regulation Financial Market: Incomplete Regulation
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Banks and Financial Companies Banks and Financial Companies
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Conclusion Conclusion
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Seven Politicians’ Burden? The Evolution of Company Law
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Published:January 2022
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Abstract
The chapter describes the evolution of company law. At independence, Indian company law had been an inheritance from Britain. It was a transplant, albeit with some peculiar features, laws on the managing agency organization being one. In the next quarter-century, the pursuit of a new developmental policy demanded changes in this regime. Whereas the purpose of British-Indian corporate law was to promote trade and investment links between Britain and India, that aim receded in priority after 1947. Older industries like tea and textiles were no longer the desired investment fields. The priority fields were metals, machines, and chemicals, all sheltered by tariff protection. The pursuit of this policy generated bankruptcy and unemployment in older industries, and concentration in the heavy industries. As it did, antitrust measures and avoidance of insolvency saw new laws added to company law. These interventions depressed investment in the private sector and encouraged investment in the government sector, where capital yielded considerably less value. From the 1990s, the legislative drive changed again to retract some of the antitrust and anti-insolvency biases, and to restore compatibility between Indian and international law. That process was often held back by political backlash.
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