COMPANY LAW

SEMESTER 3

B.COM CC305

By: CS REENA KUMARI

ASSISTANT PROFESSOR
DEPARTMENT OF COMMERCE
PATNA WOMEN’S COLLEGE (AUTONOMOUS)
PATNA UNIVERSITY
 Companies Act ,2013
 The Companies Act 2013 passed by the Parliament
received the assent of the President of India on
29th August 2013.
 The act is now in force w.e.f. 1st April 2014 and it
removed certain sections of Companies Act 1956
in order to ensure good corporate governance.
 It has more than 470 sections, 7 schedules and 29
chapters.
 Comparison Between Companies Act 1956
vs 2013
 The Companies Act 1956 Act provided companies to elect
financial year.
 The Companies Act 2013 Act eliminates the existing flexibility in
having a financial year different than 31 March. The 2013 Act
provides that the financial year for all companies should end on
31 March, with certain exceptions approved by the National
Company Law Tribunal.
 Financial year from 1st April 2018 to 31st March 2019 –yes
allowed
 Financial year from 1st June 2018 to 31st May 2019 –Not
allowed. FY will end on 31st March 2019
 KEY TERMS EXPLAINED
 CHAPTER-A Chapter is a major topic of
law.Eg.Chapter VIII for declaration and payment of
dividend, Chapter IX for Accounts of Companies.
 SECTION-A Section is a topic area within a chapter.
Eg.Section 128 for Books of Accounts etc to be kept by
Company, Section 129 for Financial Statements.
 PROVISIONS/SUB-SECTION -A provision is part of
a section. Eg.Section 128 (1) Section 128(1) requires
every company to prepare and keep the books of
account and other relevant books and papers and
financial statements at its registered office.
 KEY TERMS EXPLAINED
 RULES-These are prescribed by government for
smooth implementation of provisions of law and
also gives clarity for its practical implementation.
E.g. Rule 3 Companies Accounts Rules 2014. Rule
3 lays down the manner of books of account to be
kept in electronic mode.
 SCHEDULE-It is proper format prescribed by
law. E.g. Schedule III gives format of the Balance
Sheet and Statement of Profit and Loss.
 Unit 4 Topics
1. Dividend (Provisions relating to payment
of dividend)
2. Provisions relating to Books of Account
3. Concept and modes of Winding up
4. NCLT (National Company Law Tribunal)
Provisions relating to Books of Account

Section 128 and 129 of the Companies

Act ,2013
1. Section 128-BOOKS OF
ACCOUNTS, ETC., TO BE KEPT
BY COMPANY
2. Section 129 –FINANCIAL
STATEMENTS
 Thank you

That’s all for today

,Happy Learning