The Companies Act, 2013 consist of 470 Sections spread over 29 chapters and seven schedules appended to it. 188 sections of the old Companies law have been dropped in the Companies Act, 2013.

Main Changes introduced by Companies Act, 2013

The main object of the Companies Act 2013 is to consolidate and amend the law relating to companies so as to provide free access to entrepreneurs to the open global market, ensure transparency and accountability in the working of the companies and above all, to protect the interest of investors and stakeholders.

The mains changes or features of Companies Act 2013 may be discussed in following words –

• The concept of one person company.
• New definition included. (30 new definition)
• Uniform financial year (1 April to 31 March)
• Increase in members of Companies. ( Private Company – maximum 200 earlier it was 50)
• Simple object clause – the three distinct class of object clause, main, ancillary and other objects, have been escraped.
• Unspent money can not be utilised for other purposes.
• The requirements of statement in lieu of prospectus by private companies have been done away.
• SEBI to prescribe class/classes of companies which can file self prospectus with the registrar of companies.
• Companies to file return of allotment for all kinds of securities.
• The provisions of buy back of shares by Companies have been liberalised.
• The non breaking financial companies will now be governed by the RBI rules in the acceptance of deposits.
• The limits of 18 months for holding general meeting (AGM) from the date of incorporation has been reduced to 9 months.
• Maintenance and submission of accounts in the electronic form.
• National Advisory Committee on Account standard had been renamed as National Financial Reporting Authority (NFRA) and had been converted into Quasi Judicial body.
• Provision of Corporate Social Responsibility.
• Prescribed classes of Companies must have at least one women director.
• The maximum number of directors in a company is now 20. A person can become director of maximum 20 companies but he can’t be director of more than 10 public at a time.
• The Companies Act 2013 required a company to hold at least 4 meeting in a year and the gap between two consecutive meetings solid not exceed 120 days.
• Political contribution had been raised to 5% to 7.5% of the average of the net benefit of the companies during immediately proceedings financial year.
• New provision defining fraud in company Affairs or body corporate and punishment for it.
• The new act seeks to rationalise the revival and rehabilitation of sick Companies by providing that a company which fails repay the debts or secured creditors representing 50% of its debt amount may also apply to tribunal for declaring sick Company.
• The Companies Act 2013 provides only offence punishable with fine are compounndable by the aggrieved parties mutually under section 441 and offence which is punishable with fine or imprisonment or wih boh can be compounded with the permission of the special court.
• Provision for setting up mediation and conciliation panel of experts to mediate at the request of parties.
• The companies Act 2013 provides a new provision for the dormant Companies. ( Section 455)