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Attaching a copy of work for reference. Please note: This work is my copyright. It is introduction to an academic paper that I had written recently on the Indian Companies Act, 2013.
Introduction
The Companies Act, 1956 (hereinafter the Act) has been the cornerstone of the governance of companies in the India for years. It has set detailed procedures for registration, management and winding up of the companies within the country. The Act specifies responsibilities for the directors, secretaries as well as the company itself, thereby setting standards of work that cannot be shirked away easily. The objective of the Act was to create a corporate environment within the country that is not aimed only at capitalization of opportunity, but at sustained growth that may benefit the organisation as well as the company throughout the years to come.
With the Act being half a century old, there was dire need for upgradation of the Act in line with the current Indian as well as international economic environment. The motive of the Amendment has been to shift the focus from government regulation to corporate democracy through intensive self-regulation. With the objective of bringing related sections within a single umbrella, it became imperative to enact provisions that were not only stringent but helped enhance the transparency in the working of the various private as well as public companies.