The recently enacted Companies Act, 2013 is a landmark piece of legislation and likely to have far reaching consequences on all companies incorporated in India. The New Act substantively raises the bar on governance and thrusts greater responsibility and obligation on the Board of Directors and Management in Indian companies.
Understanding compliance plays a big role in the success of any running business. To define it is the adherence to a list of rules and regulations and are usually directed to include checks and balances so that the business activities don’t result in the compromising the safety and welfare of others. Hence, a well-structured system of regulations and policies whose objective is to keep any running business out of legal troubles is known as Compliance Management System.
Once you plan to set up a business the one word that will keep showing up is ‘compliance’. Simply put, compliance is when an establishment meets its legal obligations. Such obligations are usually directed to protect the safety, health and welfare of others. A compliance management system is a well-structured system of rules, regulations, policies and objectives framed to keep your business functions out of any legal trouble.