INTERPRETATION OF THE WORD ‘CONTROL’ UNDER THE NEW ACT
- Sudhanshu Singh
REVIEW OF LITERATURE
1. G K Kapoor, Sanjay Dhamija, Companies Act, 2013, Taxman Publications, 20th Edn (2015)
This book has rightly dealt with explanation of the various important changes introduced under
the new companies act comparing it with the old 1956 legislation. Specifically talking about
the definition under section 2(27) i.e. of the word ‘control’, the book has aptly described the
manner of the interpretation and application of this word under various circumstances along
with reliance on certain real examples and relevant case laws.
2. James P. Walsh and James K. Seward, On the Efficiency of Internal and External
Corporate Control Mechanisms, The Academy of Management Review Vol. 15, No. 3
(Jul., 1990), pp. 421-458 accessed at http://www.jstor.org
For explanation of various types of control mechanisms, the researcher has relied on the above
article where the entire paper has aptly dealt with the strength and shortcomings of both kinds
of control mechanisms that can be employed to help align the diverse interests of managers
and shareholders.
RESEARCH PROBLEM
The lack of proper definitions and regulations with regard to the issue of ‘control’ under
company law and varying definitions of the same as given under various other rules and
regulations has made the researcher work on the problem of solving the ambiguity over the
interpretation of the word and rightly establish its actual relevance in the corporate world.
SCOPE AND OBJECTIVE
The scope of the research project is limited to areas of applicability of the word ‘control’
highlighting the need and manner in which the same is interpreted under varying situations and
circumstances.
The objective is to explain clearly how the word ‘control’ should be interpreted according to
its definition under the new companies Act meanwhile differentiating the interpretation from
other regulations of similar nature. In addition, to understand whether the widely differing
definitions of the term ‘control’ are sufficient in themselves or whether a certain degree of
uniformity or harmonisation in the definition is desirable.
