( 1 ) THE Indian Companies Act, 1913, which was extensively amended in 1936 and thereafter further amended from time to time, called for a drastic revision after the end of World War II. "apart from the experience gained in the actual working of the Act, which threw up many points necessitating its amendment, large changes had taken place in the organization and working of joint stock companies, and over a wide sector that was dominated by new elements in trade and industry, the character of Company management had also materially altered. In many cases conventional methods of Company management were discarded in favour of less orthodox and more venturesome techniques which the existing Company law was unable to control adequately. " (Report of the Company Law Committee 1952, p. 3 ). The lacunae in the Act left the way open to some business men to misuse and at times to pervert the provision of the law to serve their private ends.

( 2 ) SO long as the Second World War lasted the pull of war economy on domestic production masked these malpractices but the end of the war exposed them to the full view of an increasingly critical public. Thus arose the demand for amendment of the India

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