<h1>Companies Bill 2011 to Replace 1956 Act; Stricter Penalties for Vanishing Companies and Fraud Prevention Introduced.</h1> The Companies Act, 1956 is set to be replaced by the Companies Bill, 2011, which introduces stricter penalties for vanishing companies and fraud prevention. An expert group, led by Dr. J. J. Irani, was formed in December 2004 and submitted its report in May 2005 to the Central Government. The report aims to update the Companies Act, 1956 in line with current economic and business conditions. This information was provided by the Minister of State for Corporate Affairs in a written response to the Lok Sabha.