COMPANIES ACT,2013

V/s

COMPANIES ACT,1956

By:

MOHIT KUMAR
SECTION B
MBA 1ST SEMESTER

Milestones in making
COMPANIES ACT,2013 enforceable
2008

2012

2013

rd
Companies
Companies bill
bill Introduced
Introduced in
in Lok
Lok sabha
sabha on
on 23
23rd October
October 2008
2008
the
the first
first time,
time, to
to replace
replace 52
52 year
year old
old Companies
Companies Act
Act ,, 1956
1956

Companies
th December 2012
18th
Companies Bill
Bill passed
passed in
in Lok
Lok Sabha
Sabha on
on 18
December 2012

th
Bill
Bill passed
passed in
in Rajya
Rajya Sabha
Sabha on
on 8
8th August
August 2013
2013

Enacted
Enacted as
as Companies
Companies Act
Act 2013,
2013, with
with President
President assent
assent on
on
th
th August 2013
29
2013 29 August 2013

2013

for
for

Need

For New Companies Act

Structural Comparison
Companies
Act 1956

Companies
Act 2013

13 Parts

29 Chapters

658 Sections
And
15 Schedules

470 Sections
And
7 Schedules

CAPTION

OLD COMPANIES
ACT 1956.

NEW COMPANIES
ACT 2013.

There are maximum There are maximum number of

of 50 members.
200 members.
Members

Does not exists.

The concept of one person

company was introduced to
form a private limited company.

One person
Company
It can be treated
has conclusive
evidence.
Incorporation

It cant be treated has

conclusive evidence because
action can be taken even after
incorporation.

CAPTION

OLD COMPANIES
ACT 1956.

It consists of name
clause, situation clause,
object clause,
Memorandum of subscription clause, etc.,.
association

Articles of
association

Resident
Director

It has companies limited

by share, limited by
guarantee & unlimited
companies.

NEW COMPANIES
ACT 2013.
It consists of all the
clauses but in object
clause the sub-clause
named other objectives
is excluded.
No changes have been
done in this regard.

Every company shall

have one director who
No such provision existed. lives in India for a
period of 180 days for
last calendar year.

CAPTION

OLD COMPANIES
ACT 1956

NEW COMPANIES
ACT 2013.

No such provision
existed.

Inspection of
documents in
electronic form is
made.

No such provision
existed.

In prescribed
companies classes or
class women can be a
director.

E-governance

Women director

Maximum no. of
Directors

Max. no of directors
are 12 not beyond
them with approval
of central govt.

Number increased to
15 but by passing with
special resolution .

CAPTION

Applicability of
law

Issue of bonus
shares

Exit option of
share holder

OLD COMPANIES
ACT 1956
It is acceptable whole
India except in Sikkim
has they has their own
companys act.

NEW COMPANIES
ACT 2013.
It is applicable to whole
India.

No such provision existed. Private limited

However rules framed in
companys are not
unlisted public company.
permitted to issue
bonus shares.(clause 63
and 23)
Share holders can have
No such provision existed. exit option if money
raised has not been
utilised.

CAPTION

OLD COMPANIES
ACT 1956

NEW COMPANIES
ACT 2013.
Constitution of corporate social
responsibility (C.S.R.)
Committee of the board is
compulsory for companies:

No provisions for
CSR initiatives

Corporate
Social
Responsibility
(C.S.R.)

- Having turnover of rupees

1000 crore or more or
-a net profit of rupees 5 crore
during financial year.
Every financial year at least
2% of the average net profits
to be spent on CSR activities,

NFRA
Through Section 132 of the Companies Act, 2013,
the Central Government has introduced a new
regulatory authority named as National Authority
for Financial Reporting known as National Financial
Reporting Authority (NFRA) with wide powers to
recommended, enforce and monitor the
compliance of accounting and auditing standards.
NFRA shall be responsible for monitoring and
enforcing compliance of auditing and accounting
standards and for that purpose, oversee the
quality of professions associated with ensuring
such compliances.

Forbes Magazine India Listed The

Companies Who Are Contributing For
CSR