The Companies Act is a set of laws that govern the formation, operation, and dissolution of companies in a specific country. It provides guidelines on how companies should be registered, managed, and regulated, ensuring transparency and accountability in business practices. The Act also outlines the rights and responsibilities of shareholders, directors, and other stakeholders involved in a company. In many countries, the Companies Act is crucial for maintaining fair competition and protecting the interests of investors and consumers. It often includes provisions for financial reporting, corporate governance, and compliance, helping to create a stable business environment.