INTRODUCTION (THE COMPANIES ACT 2013)

INTRODUCTION
The Companies Act, 2013 was enacted to consolidate and amend the law relating to the companies. The Companies Act, 2013 was preceded by the Companies Act, 1956.

Due to changes in the national and international economic environment and to facililate expansion and growth of our economy, the Central Government decided to replace the Companies Act, 1956 with a new legislation. The Companies Act, 2013 contains 470 sections and seven schedules. The entire Act has been divided into 29 chapters. A substantial part of this Act is in the form of Companies Rules. The Companies Act, 2013 aims to improve corporate governance, simplify regulations, strengthen the interests of

minority investors and for the first time legislates the role of whistle-blowers. Thus, this enactment seeks to make our corporate regulations more contemporary. 

Applicability of the Companies Act, 2013:

The provisions of the Act shall apply to-

•  Companies incorporated under this Act or under any previous company law. 
•  Insurance companies (except where the provisions of the said Act are inconsistent with the provisions of the Insurance Act, 1938 or the IRDA Act, 1999) 
•  Banking companies (except where the provisions of the said Act are inconsistent with the provisions of the Banking Regulation Act, 1949) 
•  Companies engaged in the generation or supply of electricity (except where the provisions of the above Act are inconsistent with the provisions of the Electricity Act, 2003) 
•  Any other company governed by any special Act for the time being in force. 
• Such body corporate which are incorporated by any Act for time being in force, and as the Central Government may by notification specify in this behalf.