Development of company law in India : the case of the Companies Act 1956

The influence of culture and politics on the promulgation of accounting regulations in the Companies Act 1956 in India immediately post independence is analysed using an exploratory framework based on the work of McKinnon (1986) and Gray (1988). Within the framework, the process of change is analysed into three phases, a source phase, diffusion phase and reaction phase with all phases of change being influenced by intra-system activity, trans-system activity and the social and cultural context of India. In particular, the importance of the role of the Government within the process of accounting change is seen and the social context is seen to influence both the need for change and the process of change.culture; politics; accounting change; India; company law