The Companies Act, 2013 (CA) is a comprehensive legislation in India that regulates the incorporation, functioning, and dissolution of companies, replacing the Companies Act, 1956, to enhance corporate governance and transparency.
The Companies Act, 2013 comprises 29 chapters and 470 sections, along with 7 schedules. The outline of the Act is as follows:
| Chapters | Sections | Classification of Provisions |
|---|---|---|
| Chapter 1 | Sections 1 to 2 | Preliminary |
| Chapter 2 | Sections 3 to 22 | Incorporation of Company and Matters Incidental Thereto |
| Chapter 3 | Sections 23 to 41 | Prospectus and Allotment of Securities Public Offer and Private Placement (23-28) Allotment and Securities (29-41) |
| Chapter 4 | Sections 42 to 72 | Share Capital and Debentures |
| Chapter 5 | Sections 73 to 76A | Acceptance of Deposits by Companies |
| Chapter 6 | Sections 77 to 87 | Registration of Charges |
| Chapter 7 | Sections 88 to 122 | Management and Administration Registers and Returns (88-97) Meetings and Resolutions (98-122) |
| Chapter 8 | Sections 123 to 127 | Declaration and Payment of Dividend |
| Chapter 9 | Sections 128 to 138 | Accounts of Companies |
| Chapter 10 | Sections 139 to 148 | Audit and Auditors |
| Chapter 11 | Sections 149 to 172 | Appointment and Qualifications of Directors |
| Chapter 12 | Sections 173 to 195 | Meetings of Board and its Powers |
| Chapter 13 | Sections 196 to 205 | Appointment and Remuneration of Managerial Personnel |
| Chapter 14 | Sections 206 to 229 | Inspection, Inquiry, and Investigation |
| Chapter 15 | Sections 230 to 240 | Compromises, Arrangements, and Amalgamations |
| Chapter 16 | Sections 241 to 246 | Prevention of Oppression and Mismanagement |
| Chapter 17 | Sections 247 to 253 | Registered Valuers |
| Chapter 18 | Sections 254 to 260 | Removal of Names of Companies from Register |
| Chapter 19 | Sections 261 to 365 | Revival and Rehabilitation of Sick Companies |
| Chapter 20 | Sections 366 to 378 | Winding Up |
| Chapter 21 | Sections 379 to 393 | Companies Authorised to Register Under This Act |
| Chapter 22 | Sections 394 to 408 | Companies Incorporated Outside India |
| Chapter 23 | Sections 409 to 416 | Government Companies |
| Chapter 24 | Sections 417 to 424 | Registration Offices and Fees |
| Chapter 25 | Sections 425 to 433 | Companies to Furnish Information or Statistics |
| Chapter 26 | Sections 434 to 438 | Nidhis |
| Chapter 27 | Sections 439 to 446 | National Company Law Tribunal and Appellate Tribunal |
| Chapter 28 | Sections 447 to 458 | Special Courts |
| Chapter 29 | Sections 459 to 470 | Miscellaneous |
The Companies Act, 2013 aims to enhance corporate governance, transparency, and investor protection. Key provisions include:
The Companies Act, 2013 is a legislation that regulates the incorporation, governance, and dissolution of companies in India, replacing the Companies Act, 1956.
The Act was enacted on August 30, 2013, and most provisions came into force by April 1, 2014.
An OPC is a company with a single member, introduced under Section 2(62), allowing entrepreneurs to operate with limited liability.
Section 135 mandates companies with a net worth of ₹500 crore, turnover of ₹1000 crore, or net profit of ₹5 crore to spend 2% of average net profits on CSR activities.
Independent directors (Section 149) are non-executive directors with no material or pecuniary relationship with the company, ensuring unbiased oversight.
Section 447 prescribes imprisonment from 6 months to 7 years and fines up to three times the amount involved for fraud.
The NCLT (Chapter 27) adjudicates company-related disputes, including insolvency, mergers, and oppression/mismanagement cases.
Chapter 22 (Sections 379-393) requires foreign companies with a place of business in India to register and comply with specific provisions.
Challenges include:
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The following chapters and sections are sourced from the Companies Act, 2013. This information is for educational purposes only; verify with official sources (e.g., India Code) for legal use. We are not liable for errors or consequences from use.