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Companies Act 2013/1956
Act - 2013/1956
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Read comprehensive analysis of various aspects of the Companies Act by our expert team for a quick and easy understanding
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Clause 49 Vs Companies Act 2013.
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Liability of Auditors- More Accountability
Consolidation of Accounts- difficult job
Securities-tightening screws
Private Placement-much needed overhaul
Registered Valuers- New Opportunity
Class Action Suit- A new weapon
Fraud Sword-learning from mistakes
Fast Track Merger-good days ahead
Corporate Governance-a modest start
Role of Auditors-accountable & alert
One Person Company- a mixed bag
CSR-Understanding & its impact
Independent Directors - towards good governance
Liberalized Provisions- a sigh of relief
Stringent Provisions- screws tightened
Corporate Governance – a positive step
Treasury Stock- lost opportunity
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Associate
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Independent Directors - towards good governance
CSR-Understanding & its impact
One Person Company- a mixed bag
Class Action Suit- A new weapon
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New Concepts in the New Act
New Concepts in the New Act
New Concepts in the New Act
Associate
The term ‘associate’ has been widely under discussion for a long time now, due to various corporate scam for establishment of inter-corporate group relationships. While the Companies Act 1956 did not prescribe for any definition of the term ‘associate’, the relationship between entities till date may be established either by way of establishment of holding-subsidiary relationship or defining Companies under same management.
Dormant Company
This is a new initiative of Ministry of Corporate Affairs to introduce the concept of Dormant Companies, whereby Companies which are not carrying on any significant accounting transaction for a period of two years can apply to Registrar of Companies for getting declared itself as Dormant Companies.
Secretarial Audit
The Companies Act 2013 provides for compulsory Secretarial Audit by certain class of Companies and annexing of same with the Board Report, which is circulated to all the shareholders.
National Financial Reporting Authority
In the Companies Act 2013, the Central Government has introduced a new authority named asNational Financial Reporting Authority with wide powers to recommend, monitor and enforce the compliance of accounting and auditing standards. The Companies Act 1956 gives powers to Central Government to form a committee for giving a recommendation on Accounting Standards is National Advisory Committee on Accounting Standards.
National Company Law Tribunal
As per Section 408 of the Companies Act, 2013, the Central Government shall constitute by notification published in Official Gazette the National Company Law Tribunal (NCLT). The National Company Law Tribunal will exercise and discharge the powers and functions as conferred or as may be conferred under the Companies Act, 2013 or any other law for the time being in force.
Special Courts
Section 435 of the Companies Act, 2013 provides for the speedy trial of offences by empowering Central Government, to establish or designate by notification as many Special Courts as may be necessary.
Independent Directors
The concept of independent directors was initially introduced with a view to increase transparency, fairness and independence in decision making and, protect stakeholders’ interest. So far only listed public companies were required to appoint independent directors under the Listing Agreement.
CSR
Corporate Social Responsibility is now accepted as a means to achieve sustainable development of an organization. Hence, it needs to be accepted as an organizational objective. The Companies Act, 2013 will make Indian companies to consciously work towards that objective, as it requires a prescribed class of companies to spend a portion of their profits on CSR activities.
One Person Company
The Companies Act 2013 defines 'One Person Company' or OPC as a company formed for any lawful purpose with only one person as its member. One person company is a private company with one person subscribing to the Memorandum and complying with the requirements of the legislation in respect of registration.
Class Action Suit
A class action or a class suit is a lawsuit that allows a large number of people with a common interest in a matter to sue or be sued as a group. The concept that is common in developed countries such as the US, UK and Singapore did not exist in India. The provision of class suit gives stakeholders an edge in retrenching their rights.
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