Question: What Are The Objectives Of Companies Act 2013?

What are the objectives of company law?

The basic objectives underlying the law are: A minimum standard of good behaviour and business honesty in company promotion and management.

Due recognition of the legitimate interest of shareholders and creditors and of the duty of managements not to prejudice to jeopardize those interests..

What are the features of Companies Act 2013?

Key Highlights of Indian Companies Act 2013 The maximum number of members (shareholders) permitted for a Private Limited Company is increased to 200 from 50. One-Person company. Section 135 of the Act which deals with Corporate Social Responsibility. Company Law Tribunal and Company Law Appellate Tribunal.

What are the features of company?

Main Features:Artificial Legal Person: A company is an artificial person created by law. … Separate Legal Entity: A company has a distinct entity separate from its members or shareholders. … Common Seal: … Perpetual Existence: … Limited Liability: … Transferability of Shares: … Separation of Ownership from Management: … Number of Members:

What do you mean by Company Act 2013?

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.

What is the difference between Companies Act 1956 and 2013?

The Companies Act, 1956 (existing Act) contains 658 sections and XV schedules. The Companies Act 2013 has 464 sections and 7 schedules. The Act, has lesser sections as the Companies will be governed more through the rules which are yet to be prescribed.

What is Section 8 of Companies Act 2013?

A company is referred to as Section 8 Company when it registered as a Non-Profit Organization (NPO) i.e. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for …

Is Companies Act 1956 still applicable?

The MCA has partially enforced provision of Section 465 in so far those relate to the Companies Act, 1956 only, i.e., the Registration of companies (Sikkim) Act 1961 will continue to remain in force. …

What is Section 25 of Companies Act 2013?

Section 25 companies are ‘non- profit’ companies are granted license and registered as any other company and may be a public or private company. Though the purposes for which such a company is formed is clearly laid down in Sub section 1 of Section 25 and are majorly charitable purposes.

What is the meaning of Company Act?

an Act of Parliament which regulates the workings of companies, stating the legal limits within which companies may do their business.

What is company law and its features?

Features & Characteristics Of A Company Artificial Legal Person: In the eyes of the law, A company is an artificial legal person which has the rights to acquire or dispose of any property, to enter into contracts in its own name, and to sue and be sued by others.

What is mca21 company law?

MCA21 is an e-Governance initiative of Ministry of Corporate Affairs (MCA), Government of India that enables an easy and secure access of the MCA services to the corporate entities, professionals and citizens of India.

How many rules are there in Companies Act 2013?

New Companies Act, 2013 The Companies Act, 2013 has been notified on 30th August 2013 after getting the assent of the President. The Act is having 29 Chapters, 470 sections and 7 schedules.

What is private company as per Companies Act 2013?

Effective from 12-09-2013 “private company” means a company having a minimum paid-up share capital of one lakh rupees or such higher paid-up share capital as may be prescribed, and which by its articles,—

What is minimum subscription as per Companies Act 2013?

Minimum subscription refers to the minimum amount which a company should raise at the time of issuing capital. The requirement for minimum subscription applies to all companies which raise funds from the public. The company may successfully procure the amount of minimum subscription.

Is Companies Act 2013 applicable to banks?

Therefore, there is no doubt that the expression “financial institutions” under the Companies Act 2013 includes not only banks but also financial institutions. Fraudulent inducement to lend money: Let us now see an innocuous looking provision in section 36 of the Companies Act.

What is an Indian company?

A Company registered in India is an Indian Company. An Indian Company is the one registered in India under the Companies Act of 1956. Indian Company is treated as resident in India. It has to pay tax in Indian for its global income.

What is the meaning of common seal?

A company seal (sometimes referred to as the corporate seal or common seal) is an official seal used by a company. … Documents which need to be executed as deeds (as opposed to simple contracts), may be executed under the company’s common seal.

What are the objectives of the Companies Act 2013?

Purpose/ Objectives of the Companies Act 2013To develop the economy by encouraging entrepreneurship.Creating flexibility and simplicity in the formation and maintenance of companies.To encourage transparency and high standards of corporate governance.More items…•

When did Companies Act 2013 became applicable?

29 August 2013The long-awaited Companies Bill 2013 got its assent in the Lok Sabha on 18 December 2012 and in the Rajya Sabha on 8 August 2013. After having obtained the assent of the President of India on 29 August 2013, it has now become the much awaited Companies Act, 2013 (2013 Act).

Which is new in the Company Act amendment in 2013?

Section 441(1)(b) of the Companies Act was amended in order to increase the pecuniary jurisdiction of the Regional Director and the Regional Director shall be empowered to compound the offences which are punishable with fine up to a sum of twenty-five lakh which was earlier limited to five lakh rupees.