Salient Features of Companies Act, Formation of a Company under Companies Act, What is the Companies Act, ? This team works under the guidance and supervision of Editor-In-Chief Mr. Rakesh Bhargava. The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in our publications and research platform.
The team ensures that the following publication guidelines are thoroughly followed while developing the content:. This was really very helpful for my research. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment.
How to form or register a company under Companies Act ? Here are the steps to form or register a company under Companies Act Step 1: Application for allotment of Director Identification Number in DIR Apply for the Directors identification number by attaching documents - resistance proof, ID proof, copy of verification by the Applicant in DIR - 4 and specimen signature.
What are the features of Companies Act ? Companies Act has introduced new features as given below: 1. What are the provisions of Companies Act ? Certain important provisions are given below to ensure timely compliance by the companies: 1.
Special resolution for borrowing in excess paid - up capital and free reserve: Section of the Companies Act requires that company cannot borrow in excess of its paid up capital and free reserves, unless approved by the special resolution.
What are the objectives of Companies Act ? To protect the interests of investors by drafting accurate information in the prospectus. To promote corporate social activities undertaken by the companies. To ensure full disclosure of affairs of the companies in their published annual accounts. To enhance the economy the company by encouraging entrepreneurship.
To curtail insider trading activities. To protect the rights of investors and creditors of the company. To enhance the economy of the country by enhancing entrepreneurship. What is the difference between Companies Act and ? Point of Difference Companies Act Companies Act Financial Year Ends on 31 st March every year Financial year ending on a date was used to be finalized by the company Earlier there was no fixed date for ending a financial year, now the date is fixed Maximum number of partners Maximum partners in private companies.
Maximum 50 partners in private companies. The maximum number of partners in private companies is increased from 50 to Maximum number of shareholders excluding past and present employees 50 excluding past and present employees The number of shareholders has been increased from 50 to Memorandum of Association Object Clause Availability of name The object for which company is incorporated is included and any matter considered necessary.
Section 4 4 and 4 5 i of the Act incorporate the procedural aspects of application for availability of name of proposed company or proposed new name for existing company. Objects of the Company were classified as the main objects of the company, objects incidental or ancillary to the attainment of the main objects and other objects of the company. Procedural aspects of application for availability of name find no place in the Act. Earlier the object clause was a bit extensive in comparison to current Companies Act.
Earlier there was no procedural aspect of application, now it is there. Articles of Association Entrenchment Provisions Articles contain such provisions No as such provisions were there Earlier there was no entrenchment provision, now the new provision is made under Companies Act Commencement of Business A declaration has to be filed by a director or with the registrar.
There issue of prospectus. Nifty 17, Honeywell 45, Market Watch. ET NOW. Brand Solutions. Video series featuring innovators. ET Financial Inclusion Summit. Malaria Mukt Bharat. Wealth Wise Series How they can help in wealth creation. Honouring Exemplary Boards. Deep Dive Into Cryptocurrency. ET Markets Conclave — Cryptocurrency. SEBI, on the other hand, is a capital markets regulator having distinct responsibilities in regulation of the conduct of intermediaries capital market and interaction between entities seeking to raise and invest in capital.
We do not subscribe to the view that corporates seeking access to capital need to be liberated from their responsibilities under all other laws of the land and , thereby the oversight by the State, and be subjected to exclusive control and supervision of a specific regulator.
Corporates have to function as economic persons within the Union of India in a manner that contributes to the social and economic well being of the country as a whole and as such must be subject to the laws pronounced by the Parliament for the welfare of its citizens.
Corporate Governance goes far beyond access to capital. Taking a narrow view of Corporate Governance as limited to public issue of capital and the processes that follow would be to the detriment of corporate entities themselves. Equally, the capital market regulator has to play a central role in public access to capital by the companies and must have he necessary space to develop suitable frameworks in tune with the fluidity of the capital markets.
To our mind, with the substantive law being compiled to reflect the core governing principles of corporate operations and separation of procedural aspects, it would be possible for the Regulator to provide the framework of rules for its domain consistent with the law.
Such rules would be complementary to the legislated framework and there would be no overlap or conflict of jurisdiction between regulatory bodies. We therefore recommend a harmonious construction for operation of the State and regulatory agencies set up by it. The Committee recognized that the Indian economy is yet in its growing phase. The number of companies being set up will increase over a period of time as new business opportunities emerge and new technological frontiers are scaled.
Many new companies will be set up as small companies who will grow big in the future. It is clear that the small companies would contribute significantly to Indian economy. Because of their size, they cannot be burdened with the same level of compliance requirements as, say, the large public listed companies. The small companies have to be enabled to take quick decisions, be adaptable and nimble in the changing economic environment, yet be encouraged to comply with the essential requirements of the law through low cost of compliance.
The Government may prescribe special regime for such companies through a system of exemptions. Corporate issues will also require a quick resolution.
The time taken in the existing framework needs to be reviewed. This is particularly so in the context of rehabilitation, liquidation and winding up.
Mergers and amalgamations also need to be facilitated to take place through a speedier process.
0コメント