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The Companies
Act 2013 is an Act of the Parliament of India which forms the primary source of Indian Company Law and largely superseded the Companies Act 1956.
Key features and provisions of the Companies Act, 2013, include:
1. Incorporation of Companies (Sections 7-22): The Act specifies the procedures and requirements for the incorporation of various types of companies, including private companies, public companies, and one-person companies.
2. Types of Companies: The Act recognizes various types of companies, such as private companies, public companies, one-person companies, and others.
3. Corporate Governance (Sections 149-177): The Act emphasizes corporate governance by outlining the composition and role of the board of directors, audit committees, and other governance-related matters.
4. Accounts and Audit (Sections 128-138): The Act mandates the maintenance of books of accounts, preparation of financial statements, and audit requirements for companies.
5. Share Capital and Debentures (Sections 43-71): The Act regulates the issuance of shares and debentures by companies, including rules related to share capital, buyback of shares, and issuance of securities.
6. Corporate Social Responsibility (CSR) (Section 135): The Act mandates certain classes of companies to spend a percentage of their profits on corporate social responsibility activities.
7. Compromise, Arrangements, and Amalgamations (Sections 230-240): The Act provides provisions for compromises, arrangements, and amalgamations between companies.
8. Producer Companies (Chapter XXIA): The Act includes provisions for the formation and regulation of producer companies, which are companies consisting primarily of farmers or producers.
9. Registrar of Companies (ROCs) (Sections 396-404): The Act outlines the functions and powers of the Registrar of Companies, who is responsible for the administration of company-related matters.
10. National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT): The Act establishes these quasi-judicial bodies to adjudicate company law matters.
11. Penalties and Enforcement (Sections 447-460): The Act prescribes penalties for various offenses and provides mechanisms for enforcement.
