The document provides an overview of the key changes between the Companies Act, 1956 and the new Companies Act, 2013. Some of the major changes include: - The Companies Act, 2013 was recently passed in 2013 to replace the existing 1956 act and aims to move from a regime of control to one of liberalization. - It introduces provisions for corporate social responsibility, class action suits, and valuation of company assets by registered valuers. - Other changes relate to uniform financial years for companies, requirements for appointing women directors and limits on directorships, and stricter rules for auditors including mandatory rotation.

1. Companies Act 2013
Presented by:
Zenith group:
sanghamitra s
parihar
Karishma kakkad
Hina agarwal
Palash goyal
Juhi pawar
- A comparison with the Companies Act, 1956

2. History
The Companies Act, 1956 is
an act of Parliament that
was enacted in 1956
The Companies Act, 2013 was recently
passed by Rajya Sabha on 8th August
2013 and has received Presidential
assent on 29th August 2013.

3. An Overview
Companies Act, 1956 Companies Act, 2013
The Companies Act has a substantial part of the law prescribed
within itself
The Companies Act gives substantial powers to the Government &
hence major prescriptions would be in the form of Rules to be
notified separately

4. HIGHLIGTS OF COMPANIES ACT
2013
Thus ,companies act 2013 is all set to replace the
existing 56 year old company ,i.e..companies act
1956 , very soon. It moves from the regime of
control to that of liberalization or self regulation.

5. Nature /purpose of this act
1. To promote the development of the economy by encouraging
entrepreneurship and enterprise efficiency and creating flexibility
and simplicity in the formation and maintenance of companies .
2. To encourage transparency ,accountability , and high standards of
corporate governance ;
3. To recognize various new concept and procedure facilitating ease of
doing business while protecting interests of all the stakeholders
4. To enforce stricter action against fraud and gross non-compliance
with company law provisions

6. • 5.To set up institutional structure in the form of various
authorities , bodies and panels as well as by including
recognition of various roles for professionals and other
experts;
• 6. To cater to the need for more effective and time bound
approvals and compliance requirements relevant in the present
contexts.

7. Applicability of law
•Section 1 provides that Companies act 2013 applies on whole of
India.
•Companies act,1956 also applies on whole of India. However
,proviso to sec1(3) of the companies act 1956 empowers central
government to modify the provisions of the act while applying this
act on the state of Nagaland.
•Similarly sec 620B and 620C of the companies act 1956 empowers
the Central Government to modify or exempt from the provisions of
the act , while applying this act on the states of GOA,
J&K,DAMAN,DIU respectively.
These powers of the C.G has been taken away by the COMPANIES
ACT 2013

8. SCOPE OF COMPANIES ACT 2013

9. Management & Meetings
•All companies to follow uniform financial year running
from April to March (Exceptions is made only for certain
companies with the approval of NCLT)
•First AGM of the company shall be held within 9 months
from the closure of its first financial year instead of 18
months from the date of incorporation as provided in the
companies act 1956.
•Postal ballot to be applicable to all the companies whether
listed or not.
•The National Advisory Committee on Accounting
Standards renamed as THE NATIONAL FINANCIAL
REPORTING AUTHORITY(NFRA)

10. Audit & Auditors
•Every company is required at its first AGM to appoint an
individual or a firm as an auditor. The auditor shall hold
office from the conclusion of that meeting till the conclusion
of its 6th AGM and thereafter till the conclusion of every 6th
meeting. The appointment of the auditor is to be ratified at
every AGM
•Individual auditors are to be compulsorily rotated every 5
years and audit firm every 10 years in listed companies &
certain other classes of companies as may be prescribed
•A company auditors shall not provide directly or indirectly
the specified service to the company its holding and
subsidiary company.

11. DIRECTORS
•Prescribed class or classes of companies are required to appoint at least one
woman director.
•Liability of independent directors and non-executive directors not being
promoter or key managerial personnel to be limited
•A person can hold directorship up to 20 companies of which not more than 10
can be public companies.
•Companies can have maximum of 15 directors . More can be appointed after
passing a S.R

12. MISCELLANEOUS
• The act provides related to Corporate Social Responsibility .
• The act provides for class action suit by specified number of members or
depositories against the company except the banking company which is
prevalent in developed countries.
• Where any valuation is required to made of any property , stocks, shares ,
debentures, securities, goodwill, or any other assets or net worth of a
company or its liabilities under the act it shall be valued by a registered
valuer.

13. Restructuring & Revival

14. Changes - Restructuring & Revival
“ It is not the strongest of the species that survive, nor
the most intelligent, but the one most responsive to
change. ”
Charles Darwin
011-40622214/+91- 981027551 arun@indiacp.com