Think Small First Essay Example | Topics and Well Written Essays - 2500 words

Think Small First - Essay Example    This research tells that the entire process of running a corporation appeared as if the entire company administration was not running a business but doing clerical jobs with official departments managing company affairs. Smaller companies were not regarding worth consideration whenever any change or amendment was required in company legislation, whereas the fact is that bigger companies emerge only from smaller setups. It was a sort of degradation of corporate system of business administration. The present company legislation has changed the entire scenario and brought in simplified procedures and practices to encourage small entities to incorporate businesses following the revolutionary provisions promulgated under the Companies Act 2006. The provisions of the Companies Act, 2006 will be fully effective from October 2009. The motto is to think small first in order to grow bigger. With this background, the different provisions of the Companies Act 2006 are examined hereunder to find out the realities. One of the objectives of the Companies Act 2006 is to ‘think small first.’ This ‘key theme behind the Act is to reflect realities of companies in operation today. Much of the current system is predicated on the basis of large companies, whereas the vast majority of the companies are an owner- managed with five or fewer persons involved. Therefore, one of the stated aims of reform is to simplify the creation and operations of private companies, based around a ‘think small first’ approach.’ In this way reform of regulation of smaller and private companies has taken the center stage with the changes brought in by the Companies Act, 2006. The main changes brought in by the Companies Act,2006 for small companies related to the formation of the company, carrying out routine business like resolutions and meetings, accounts and auditing, and financial assistance and capital maintenance. The formation of the company has become a simp le procedure now as compared to earlier legislation.