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

Think Small First - Essay Example This research tells that the accurate shape of running a corporation appe bed as if the entire comp either 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 little 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(a) the Companies Act 2006. The provisions of the Companies Act, 2006 will be fully effective from October 2009. The motto is to think small graduation exercise in order to grow bigger. With this background, the different provision s of the Companies Act 2006 are examined hereunder to find knocked out(p) 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 regularization 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 not bad(p) maintenance. The formati on of the company has become a simple procedure now as compared to earlier legislation.