Overview on Companies Act, 1956 (2024)

FAQs

What is the Companies Act, 1956 in simple words? ›

In our country, the Companies Act, 1956 primarily regulates the formation, financing, functioning and winding up of companies. The Act prescribes regulatory mechanism regarding all relevant aspects including organisational, financial and managerial aspects of companies.

The Companies Act 2013 regulates the formation and functioning of corporations or companies in India. The first Companies Act after independence was passed in 1956, which governed business entities in the country. The 1956 Act was based on the recommendations of the Bhabha Committee.

As per Companies Act of 1956, one person cannot form a company and as per Companies Act of 2013, one person can form a one person company. You can read about the Companies Act 2013 – Indian Companies Act Definition, Companies Act 1956 in the given link.

6. No alteration shall be made to this Memorandum of Association or to the Articles of Association of the company which are for the time being in force, unless the alteration has been previously submitted to and approved by the Regional Director.

(4)Every public company, existing on the commencement of the Companies (Amendment) Act, 2000, with a paid-up capital of less than five lakh rupees shall, within a period of two years from such commencement, enhance its paid-up capital to five lakh rupees.

Kinds of share capital. (b) preference share capital: Provided that nothing contained in this Act shall affect the rights of the preference shareholders who are entitled to participate in the proceeds of winding up before the commencement of this Act.

The importance of the Act is to provide for the incorporation, registration, management and capitalisation of profits in every company.

It imposes a duty to 'promote the success of the company for the benefit of its members as a whole' having regard to various factors including the longer term, and the interests of employees, suppliers, consumers and the environment.

(1) A private company other than a company registered under section 8 of the Act having paid up share capital of fifty lakhs rupees or less or and average annual turnover during the relevant period having paid up share capital of fifty lakhs rupees or less and average annual turnover, during the relevant period is two ...

Sec 23 - Registration of change of name and effect thereof.

(2) The Registrar shall also make the necessary alteration in the memorandum of association of the company.

What is Section 301 of the Companies Act, 1956? ›

(1)Every company shall keep one or more registers in which shall be entered separately particulars of all contracts or arrangements to which section 297 or section 299 applies, including the following particulars to the extent they are applicable in each case, namely:- (a)the date of the contract or arrangement; (b)the ...

(1)No company shall pay to any officer or employee thereof, whether in his capacity as such or otherwise, remuneration free of any tax, or otherwise calculated by reference to, or varying with, any tax payable by him, or the rate or standard rate of any such tax, or the amount thereof.

(5) Where the articles contain provisions for entrenchment, whether made on formation or by amendment, the company shall give notice to the Registrar of such provisions in such form and manner as may be prescribed.

(1)If a company refuses, whether in pursuance of any power of the company under its articles or otherwise, to register the transfer of, or the transmission by operation of law of the right to, any shares or interest of a member in, or debentures of, the company, it shall, within two months from the date on which the ...

(1)Subject to confirmation by the [Tribunal], a company limited by shares or a company limited by guarantee and having a share capital, may, if so authorised by its articles, by special resolution, reduce its share capital in any way; and in particular and without prejudice to the generality of the foregoing power, may ...

Companies Act, 1956-S. 58A-Companies (Acceptance of Deposit) Rules, 1975-R 3A-Imposition of obligation on Companies inviting/accepting deposits from public to deposit or invest 10 per cent of deposits maturing during the year with a Scheduled bank or in government securities, etc.

Authentication of documents and proceedings . - Save as otherwise expressly provided in this Act, a document or proceeding requiring authentication by a company may be signed by a Director, [* * *] the manager, the secretary or other authorised officer of the company, and need not be under its common seal.

Introduction. The concept of 'capital' has a restricted and technical meaning within company law. A company's capital adds up to all of the cash or the value of assets received by a company from investors in return for the company's shares. This is an important source of finance for companies.

9.2 The expression 'independent director' should mean a non-executive director of the company who :- a) Apart from receiving director's remuneration, does not have, and none of his relatives or firms/companies controlled by him have, any material pecuniary relationships or transactions with the company, its promoters, ...