Note on overview of the Companies Act

2013

A company is a legal entity formed by a group of individuals in order to

work towards a common objective. The Act was introduced with the
objective of meeting the changed national, international and economic
environment and to accelerate the expansion and growth of the economy
in India. A company can be a commercial or an industrial enterprise. An
identity of a company is separate from the individuals who own, manage
and support its operations. Each company has its vision, mission, values,
appraisal system, corporate structures and hierarchy. 

Definition of a company Under Companies Act 2013

A company is a registered association denoting an artificial legal person.

It has an independent legal entity with perpetual succession, a common
capital composed of transferable shares, a common seal for its signatures,
and carrying limited liability.

Companies Act 2013?

The Companies Act 2013 is an Act of the Parliament of India which

regulates the incorporation, formulation and functioning of companies
India. The Companies Act 2013 is the replacement of Indian Companies
Act, 1956. The Act makes comprehensive provisions to govern all the
listed and unlisted companies of the country. The Companies Act 2013
empowers shareholders and highlights higher value for corporate
Governance. 

No. of sections are there in Companies Act 2013

The Companies Act 2013 contains 29 chapters and has fewer sections
(470) in comparison to companies Act 1956 (658). It has 7 schedules. 
kind of changes is done in Companies Act 2013?

With the enactment of Companies Act 2013, the financial year ends on
31st March, schedule 3 of format of financial statements is followed,
concept of one person company has been introduced which was missing in
previous Companies Act. 

Why was the Companies Act 2013 introduced?

The Companies Act 2013 was introduced to ease the process of doing
business in India and improving corporate governance. Another factor
behind the introduction of Companies Act 2013 was to make companies
more accountable.