Companies Act 2013

Companies Act 2013
Companies Act 2013
An Act to consolidate and amend the law relating to companies.
Citation Act No. 18 of 2013
Territorial extent India India
Enacted by Parliament of India
Date assented to 29 August 2014
Date signed 29 August 2013
Date commenced

12 September 2013 (98 sections)

1 April 2014 (184 sections)
Legislative history
Bill The Companies Bill, 2012
Bill citation Bill No. 121-C of 2011
Repealing legislation
The Companies Act 1956
Status: In force

The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company. The 2013 Act is divided into 29 chapters containing 470 sections as against 658 Sections in the Companies Act, 1956 and has 7 schedules.[1] The Act has replaced The Companies Act, 1956 (in a partial manner) after receiving the assent of the President of India on 29 August 2013. The Act came into force on 12 September 2013 with few changes like earlier private companies maximum number of member were 50 and now it will be 200. A new term of "one person company" is included in this act that will be a private company and with only 98 provisions of the Act notified.[2][3] A total of another 184 sections came into force from 1 April 2014.[4]

The Ministry of Corporate Affairs thereafter published a notification for exempting private companies from the ambit of various sections under the Companies Act.[5]

History

Companies Act 1956 was an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, sets out the responsibilities of companies, their directors and secretaries and also provides for the procedures for its winding.[6]

New concepts

  • Corporate Social Responsibility Section(135)[8] Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.
  • Internal Auditor
  • Annual general meeting at any place of India
  • Significant Beneficial owner & declaration
  • AGM at shorter notice
  • Removal of statutory auditor's ratification at every Annual General Meeting
  • Directors' KYC

Authorities established

National Financial Reporting Authority (NFRA) is proposed to be established as an oversight body to investigate matters of professional misconduct by chartered accountants or CA firms.[9]

See also

Notes

  1. ↑ Prasad, Suresh. "Complete list of Sections of Companies Act, 2013". AUBSP. Archived from the original on 9 August 2016. Retrieved 7 August 2016.
  2. ↑ "Commencement Notification Of Companies Act 2013" (PDF). Ministry of Corporate Affairs, India. Archived (PDF) from the original on 11 January 2014. Retrieved 11 January 2014.
  3. ↑ Varma, Sindhu. "India: New Companies Act, 2013 – The Cat Is Finally Out". Mondaq. Archived from the original on 28 March 2014. Retrieved 27 March 2014.
  4. ↑ "MCA notifies 183 sections of Companies Act 2013". Business Standards. 26 March 2014. Archived from the original on 27 March 2014. Retrieved 27 March 2014.
  5. ↑ "Archived copy". Archived from the original on 13 February 2015. Retrieved 13 February 2015.
  6. ↑ "Business Portal of India : Starting a Business : Regulatory Requirements : Companies Act". National Portal of India. Government of India. Archived from the original on 20 June 2008.
  7. ↑ "Archived copy" (PDF). Archived (PDF) from the original on 13 February 2015. Retrieved 13 February 2015.
  8. ↑ Prasad, Suresh. "Section 135 - Corporate Social Responsibility Committee". AUBSP. Archived from the original on 27 March 2016. Retrieved 4 September 2015.
  9. ↑ "Cabinet To Notify Audit Regulator NFRA, Approves Draft Rules", Bloomberg Quint, 1 March 2018, archived from the original on 2 March 2018
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