What are the main features of Companies Act, 2013?
Let us learn more about these 13 characteristics of a company.
- Voluntary association.
- Company is an artificial person created by law.
- Company is not a citizen.
- Separate legal entity.
- Company has limited liability.
- Company has a perpetual succession.
- Transferability of shares.
- Separate property.
What are the rules under Companies Act, 2013?
The 29 chapters of the Companies Act-2013 is evolved with these rules and they are:
- Incorporation of Company and Matters Incidental Thereto.
- Prospectus and Allotment of Securities.
- Share Capital and Debentures.
- Acceptance of Deposits By Companies.
- Registration of Charges.
- Management and Administration.
What are the objectives of company Act 2013?
The main objectives of the companies Act of 2013 are:
- To protect the interests of the investors by furnishing fair and accurate information in the prospectus.
- To promote transparency and high standards of corporate governance.
- To put strict restrictions on insider trading activities.
What are the main reasons of the introduction of Companies Act, 2013?
The new law is aimed at easing the process of doing business in India and improving corporate governance by making companies more accountable. The 2013 Act also introduces new concepts such as one – Person Company, small company, dormant company and corporate social responsibility (CSR) etc.
What is the difference between company Act 1956 and company Act 2013?
In Companies Act 1956, only public financial institution, public sector banks or scheduled bank with main object of financing were allowed to issue there shelf prospectus but now Companies Act 2013 provides that the government shall prescribe the types of companies that can issue shelf prospectus.
What is Section 4 of Companies Act, 2013?
According to Section 4 of the Companies Act, 2013, the MoA is a legal document specifying information about the shareholding of the company. It also outlines the scope of the company’s business activities. Further, it is prepared for the purpose of registering the company. It is also called the charter of the company.
What are company rules?
Company rules and regulations mean a set of written policies made by the Company’s higher level of authority and bound to follow all employees and stakeholders. Rules and regulations help the organization protect from legal claims and establish a positive work environment in the workplace.
What is the purpose of a Companies Act?
The Act provides for: the incorporation, registration, organisation and management of companies, the capitalisation of profit companies, and the registration of offices of foreign companies doing business in South Africa; defining the relationships between companies and their respective shareholders or members and …
What is Companies Act, 2013 in simple words?
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.
How many sections are there in Companies Act, 2013?
The 2013 Act is divided into 29 chapters containing 470 sections as against 658 Sections in the Companies Act, 1956 and has 7 schedules.
What is Section 62 of Companies Act, 2013?
➢ Section 62(1)(a) of the Companies Act, 2013 states that company making right issue should send a letter of offer. ➢ No prospectus is required for ‘right issue’ to existing members, even if the members have right to renounce the right to a third person, who may or may not be a member.
What is a Section 8 company?
The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc. To incorporate a Section 8 Company, a minimum of two directors are required.
When was the Companies Act 2013 made?
[29th August,2013.] An Act to consolidate and amend the law relating to companies. BEit enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY 1. Short title, extent, commencement and application.—(1) This Act may be called the Companies Act, 2013.
What is a one person company under 2013 Act?
1.1 One-person company: The 2013 Act introduces a new type of entity to the existing list i.e. apart from forming a public or private limited company, the 2013 Act enables the formation of a new entity a ‘one-person company’ (OPC). An OPC means a company with only one person as its member [section 3(1) of 2013 Act].
What are the provisions of the 2013 Corporate Governance Act?
The 2013 Act introduces significant changes in the provisions related to governance, e-management, compliance and enforcement, disclosure norms, auditors and mergers and acquisitions.
What are the financial statements under the 2013 Act?
Apart from CFS, the 2013 Act also requires a separate statement, containing the salient features of financial statements of its subsidiary (ies) in a form as prescribed in the draft rules* . Further, section 137(1), also requires an entity to file accounts of subsidiaries outside of India, along with the financial statements (including CFS).