We keep hearing about Chapter 11 and bankruptcy filing every now and then. Specially, after fall down of US giant, Lehman Brothers, this phenomenon has become louder and louder. But, have you ever wondered if such a provision exists in India?
To put it blatantly, there is no such provision explicitly mentioned in the Indian company laws act. It just got to expose the legal framework for company regulations in India. And, certainly this is a big consideration for an MNC to expand its business operations in India. Then, a question, are we not serious about it? Can we still continue to survive with family owned business laws? How can entrepreneur burn his creative energy in such a precarious situation? Is government serious about incorporating such safeguards in company’s laws?
Little bit of googling gave me reasons to smile. There has been Companies Bill 2009 presented in Lok Sabha. Let’s hope that this would be a nice beginning to end this unregulatory era.
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