Act 2013

Act The New Companies Act got the ascent of President on th August, but it was passed in the Lok sabha on th December, and in Rajya Sabha on th August, . The Act consists of Chapters Sections and Schedules as against chapters Sections and Schedules in Act. Separate Chapters for Registered Valuers, Government Companies, Furnish information or Statistics, Nidhis, National Company Law Tribunal & Appellate Tribunal and Special Courts are introduced in Companies Act . 12th Commerce Unit - - . . PM S. No CHANGES CHANGES MADE Incorporation of Company Types of Companies Public company Private company One Person company (OPC) Maximum no of members for private companies A private company can have maximum of members One person Company New Concept Introduced Commencement of business Now applicable to all companies having share capital Memorandum of Association (MOA) Object Clause MOA to contain the objects for which the company is proposed to be incorporated and any matter considered necessary in furtherance thereof Key Managerial Person (KMP) Section ( ) KMP Includes: • CEO or MD or Manager; • Company Secretary; • WTD; • CFO; and Such other officers as may be prescribed APPOINTMENT OF WHOLE TIME KMP Section States that Every Company belonging to class or classes of companies as may be prescribed shall have KMPs • MD or CEO or Manager and in absence of a WTD • Company Secretary • Chief Financial Officer Regarding Issue of Share Capital Issue of Shares at a discount Shares, other than sweat equity shares, cannot be issued at a discount Issue of preference shares for more than years Preference shares have to be redeemed within years of issue except for the shares issued for prescribed infrastructure projects, provided a certain percentage of shares are redeemed annually at the option of shareholders Notice of alteration of share capital Company shall file a notice in the prescribed form with the Registrar within a period of thirty days of redemption of redeemable preference shares. Consolidation and division of shares Consolidation and division which results in changes in the voting percentage of shareholders shall require approval of the Tribunal to be effective. Some Important Basic changes made in the new Companies Act are as follows: 12th Commerce Unit - - . . PM