⬜ COMPANIES ACT 2013 IS AN ACT OF PARLIAMENT OF INDIA

WHICH REGULATES INCORPORATION OF A COMPANY ,

RESPONSIBILITIES OF A COMPANY , DIRECTORS , WINDING
UP OF A COMPANY

⬜ THE 2013 ACT IS DIVIDED INTO 29 CHAPTERS CONTAINING

470 CLAUSES AS AGAINST 658 SECTIONS IN THE COMPANIES
ACT 1956 AND HAS 7 SCHEDULES

⬜ THIS ACT HAS REPLACED COMPANIES ACT 1956 AFTER

RECEIVING ASSENT OF THE PRESIDENT OF INDIA ON 29
AUGUST 2013, THERE ARE FEW CHANGES IN THIS ACT
EARLIER MAXIMUM NUMBER OF MEMBERS IN PRIVATE
COMPANY WAS 50 AND NOW IT IS 200 , A NEW TERM OF ONE
PERSON COMPANY IS INCLUDED IN THIS ACT THAT WILL
BE A PRIVATE COMPANY
⬜ REGISTRATION:-
ITS COMPULSORY FOR A COMPANY TO
GET REGISTERED UNDER THE COMPANIES
ACT,2013.
⬜ INDEPENDENT CORPORATE EXISTENCE:-
A COMPANY AS A SEPARATE LEGAL
EXISTENCE, EXISTING INDEPENDENT OF
ITS MEMBERS.
⬜ PERPETUAL SUCCESSION:-
PERPETUAL SUCCESSSION MEANS THAT THE
DEATH OR INSOLVENCY OF INDIVIDUAL
MEMBERS DOES NOT IN ANY WAY EFFECT THE
CONTINUITY OF THE COMPANY.

⬜ SEPARATE PROPERTY:-
A COMPANY BEING A LEGAL PERSON IS CAPABLE
OF OWNING,ENJOYING,DISPOSING PROPERTY IN
ITS OWN NAME. WHICH MEANS THAT ALL THE
ASSETS AND LIABILITIES OF THE COMPANY ARE
OF COMPANIES AND NO MEMBER HAS SHARE IN
IT.
⬜ CAPACITY TO SUE AND BE SUED:-
A COMPANY BEING A BODY CORPORATE
CAN SUE AND CAN BE SUED IN ITS OWN
NAME.

⬜ LIMITED LIABILITY:-
THE COMPANY BEING A SEPARATE PERSON,
IT’S THE OWNER OF ITS ASSETS AND IS
LIABLE TO PAY OFF ITS LIABILITIES ON ITS
OWN. THIS MEANS THAT MEMBERS ARE
LIABLE ONLY TO THE EXTENT OF THEIR
HOLDINGS.
⬜ THERE ARE TWO TYPES OF COMPANY –
1) PUBLIC COMPANY:-
BUSINESS FIRM IN THE PUBLIC SECTOR OF
THE ECONOMY CONTROLLED AND
OPERATED BY GOVT. PERSONNEL.

2) PRIVATE COMPANY:-
BUSINESS FIRM IN THE PRIVATE SECTOR
OF THE ECONOMY CONTROLLED AND
OPERATED BY PRIVATE INDIVIDUALS.
 ⬜ ADVANTAGES ⬜ DISADVANTAGE

⬜ COMMENCEMENT ⬜ RESTRICTION ON
OF BUSINESS. TRANSFERABILITY
OF SHARES.
⬜ EXEMPTED FROM
⬜ RESTRICTION ON
ISSUE OF ISSUE OF
PROSPECTUS. PROSPECTUS.

⬜ FURTHER ISSUE OF ⬜ RESTRICTION ON

SHARES. MEMBERS.
 ⬜ ADVANTAGE ⬜ DISADVANTAGE

⬜ NO COST ON ⬜ DISCLOSURE OF
CAPITAL. INFORMATION.
⬜ BRAND VALUE. ⬜ DECISION TAKES
⬜ CORRECT TIME.
VALUATION. ⬜ COST OF IPO.
PUBLIC COMPANY
⬜ A PUBLIC COMPANY IS A COMPANY
WHICH IS OWNED AND TRADED
PUBLICLY
⬜ MINIMUM MEMBERS 7 AND MAXIMUM
UNLIMITED
⬜ MINIMUM 3 DIRECTORS AND
MAXIMUM 15 DIRECTORS
⬜ MINIMUM PAID UP CAPITAL IS RS 5
LAKHS
⬜ NO SUCH RESTRICTION SHARES ARE
FREELY TRANSFERABLE
⬜ ONLY WORD “LIMITED” TO BE ADDED
AT THE END OF ITS NAME
PRIVATE COMPANY
⬜ A PRIVATE COMPANY IS A COMPANY
WHICH IS OWNED AND TRADED PRIVATELY
⬜ MINIMUM MEMBERS 2 AND MAXIMUM 200
(EXCEPT IN CASE OF ONE PERSON COMPANY
)
⬜ MINIMUM 2 DIRECTORS NORMALLY BUT IN
CASE OF ONE PERSON COMPANY ATLEAST
ONE DIRECTOR
⬜ MINIMUM PAID UP CAPITAL IS RS 1 LAKH
⬜ PRIVATE COMPANIES CAN RESTRICT THE
RIGHTS OF ITS MEMBERS TO TRANSFER ITS
SHARES
⬜ “PRIVATE LIMITED “ TO BE ADDED AT THE
END OF ITS NAME
⬜ THE ASSOCIATION SHALL BE AN ILLEGAL ASSOCIATION.

⬜ EVERY MEMBER OF THE ASSOCIATION BECOMES

PERSONNALY LIABLE.

⬜ THE ASSOCIATION CANNOT CONTRACT DEBTS.

⬜ THE ASSOCIATION CANNOT BE RANKED AS CREDITOR.

⬜ THE ASSOCIATION CANNOT BE WOUND UP.

⬜ FINALLY, NO SUIT CAN BE FILED FOR PARTITION OF THE

ASSETS OR DISSOLUTION.