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New-Age and Power-Driven Features of the Companies Act 2013

The present Companies Act gives significance to corporate governance while empowering the shareholders.

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New-Age and Power-Driven Features of the Companies Act 2013

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  1. New-Age and Power-Driven Features of the Companies Act 2013

  2. Before 2012, The Indian Companies Act 1956 was relevant – however, it has since been replaced by the Indian Companies Act 2013. The companies Act 2013 includes clear provisions for governing the unlisted and listed companies in India. While the Companies Act 1956 consists of 658 sections, the Act of 2013 is limited to only 470 sections. The present Companies Act gives significance to corporate governance while empowering the shareholders.

  3. The difference between the Companies Act, 2013 and the existing Companies Act 1956

  4. Relevant points related to the Indian Companies Act 2013 • Section 135 of the Companies Act is related to Corporate Social Responsibility. • Throws light upon the rules related to the registration of the one-person company. • Inclusion of a Company Law Appellate Tribunal and Company Law Tribunal. • As per the existing Companies Act, the number of shareholders for a Private Limited Company was 50. However, with the new Act's passage, now the maximum number of shareholders permitted is 200.

  5. Features of the Companies Act 2013 • Empowerment of women: The Act makes it compulsory to appoint at least one woman within the board of directors' panel. • Corporate Social Responsibility: This Act seeks a specific corporate sector class to invest a specific amount of their profit on philanthropic activities annually. • Provides right to information to shareholders: Owing to this Act, a new concept known as the class action suit has been introduced. As a result, it ensures the stakeholders are other shareholders stay informed about their rights and knowledge. • Fast track merger: With the introduction of this Act, amalgamation and mergers for specific companies have become simple. For example, the merger of a subsidiary and holding companies can be tracked more quickly.

  6. One-Person company: This Act includes providing a new type of private company known as One- Person Company. As a result, a one-person company can run with a single shareholder and a director. • Electronic mode: This Act fosters the e-governance plan for carrying out several company procedures such as inspection and maintenance of documents in e-form. Besides, it provides a choice of storing the books of accounts in e-form. • Serving notice related to the board meeting: This Act requires the company to issue seven days' call notice before summoning for a board meeting. This notice can be sent through an electronic means to each director of the company at his registered address. Source: https://www.patreon.com/posts/48564176

  7. Thank You

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