The Challenges of Regulating New Forms of Business Organization, such as E-commerce and Startups Companies, under the Companies Act 1994.

Abstract

The rapid rise of new forms of business organization, such as e-commerce and startups, has posed significant challenges to the traditional company law framework established by the Company Law 1994. This study explores these challenges, focusing on the limitations of the existing legal framework and talks about how the current rules aren't very good at managing these new and innovative businesses. The big issues are that the rules focus a lot on traditional companies and don't cover e-commerce and startups very well. Also, they don't have good rules for dealing with digital things. It's hard for investors to be protected because the risks are higher with these new kinds of businesses. The rules about following certain standards are also hard for online businesses. The study says we should review and update the old rules to make them better. Some suggestions are to include online shops and new companies in the rules, make specific rules for online transactions, improve protection for investors, and have more flexible rules that adapt to different situations. This way, the rules can help new ideas, keep people safe, and make sure online shops and new companies keep doing well in the modern world.