cpc

substitution or insertion in indian companies act 2013


Dear Sir/Madam,

I hereby request to guide the comparision between companies act 1956 vs companies act 2013.

why the amendment happen? Is there any burden on the companies or the outsiders of the company.
 
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Hello Sir,

Here are few points of Comparison between Companies Act 1956 and Companies Act 2013

Financial Year:

Act 1956: Companies were permitted to have financial year ending on a date decide by Company

Act 2013: Companies must have their financial year ending on 31 March every year

Formats of Financial Statement:

Act 1956: Schedule VI

Act 2013: Schedule III

Maximum No. Of Partners:

Act 1956: 10 in banking business and 20 in any other business.

Act 2013: As per rules, subject to Max 100.currently is 50 .

Maximum Shareholders in Pvt Ltd Company

Act 1956: 50 excluding past and present employees

Act 2013: 200 excluding past and present employees

One Person Company

Act 1956: Did not exist

Act 2013: Company which has only one person (natural person) as its member

Issue of Share at Discount

Act 1956: Section 79 permitted issue of shares at a discount.

Act 2013: Section 53 prohibits issue of shares at a discount However, Section 54 permits issue of ESOPs to its employees at a discount.

Security Premium Reserve:

Act 1956: Utilization of Securities Premium Reserve was provided in Sec 77A and 78

Act 2013: Utilization of Securities Premium Reserve is provided in Section 52(2)

Article of Association:

Act 1956: Table A applied where Companies did not adopt their own Articles of Association.

Act 2013: Table F applies where Companies Limited by shares does not adopt  their own Articles of Association.

Interest in Calls in Arrears:

Act 1956: In the absence of a clause in the Articles of Association, maximum interest chargeable on Calls-in-arrears was 5% p.a.

Act 2013: In the absence of a clause in the Articles of Association, the maximum interest chargeable on Calls-in-arrears is 10% p.a.

Interest in Calls in Advance:

Act 1956: In the absence of a clause in the Articles of Association, the maximum interest payable on Calls-in-advance was 6% p.a.

Act 2013: In the absence of a clause in the Articles of Association, the maximum interest payable on Calls-in-advance is 12% p.a.

Minimum Subscripttion

Act 1956: Sec 69, the requirement of minimum subscripttion was with respect to Shares only

Act 2013: Sec39, a company shall not allot Securities unless the amount stated in the prospectus as minimum subscripttion has been subscribed & the sum paid.

Sir, I believe in an attempt to incorporate the latest trends of the corporate world and to incorporate the changes which can provide a boost to the economic growth, the Indian Government had proposed amendments in The Indian Companies Act of 1956.  A draft bill seeking amendments in The Indian Companies Act of 1956 was introduced and the same was passed by the upper house of the Parliament i.e. Rajya Sabha. Several changes were accepted with the proposed amendments in the Act.

Hope this helps.

Regards,

Esheta Lunkad

 
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