Companies act. 2013 and its important amendments :
“Companies act has the enormous changes in the growing economic India. Moreover, there is no economic condition is static as for long run of business and its growth”.
Companies Act has the enormous changes in the growing economic India. Moreover, there is no economic condition is static as for long run of business and its growth. The various changes consolidating amendments standing with favour of the company registration and initiation in India. To improve the business companies in India, companies act and its amendments changing one from period to period. First of all, the companies act, 1913. After that, Companies Act, 1956 using and extending of 57 years of period. Some part of the changes and modification also come into the existence.
The various companies carrying out the changes with the amendments like Companies Act, 1913. After the frequent corrections need by the fast growth of Indian economy.1977, 1988, 1991, 1996, 2000 and 2002 all are the years we could find the slight changes in the Companies Act. Theses all are paving easy path for new company registration process.
Companies Act 2013:
Companies Act 2013 is one of the most important amendments in the history of company registration. Because, all the important editions of companies act are combining in this recent and latest act. Nearly, 100 years of the companies act and amendments are combining in this Act. Eventually, the Companies acts all are purely replica of English Companies Act. Contrarily, it is not suitable one for progress new company registration which those Acts. So, the Bhabha Committee is recommending the necessary changes in the verbatim amendments and acts following in India.
The structure of Companies Act, 2013:
While, the Companies act 2013 following with the slight changes, modification and corrections basing on the previous act 1956. This companies Act combine with 29 law chapters all these dividing with 470 sections and also 7 schedules. Comparatively, the 1956 companies act little bit higher of 658 sections, 14 schedules. To ease the complexities the Companies Act, 2013 originating. These all are the helpful factors in the company registration process.
Companies act 2013 for the distressed companies:
However, it is very useful amendments for the initiation of Private Limited companies. It is the common economic crisis for the companies which face loan, other expenses more high than the original value of company. Then it leads to the bankruptcy condition. To solve this issue RBI restricting guidelines following in the Companies act. Through this amendment, the directors of the partnership firm can appoint their relatives as their partners.
At the time of private limited company registration,the director can be enjoy both position. It allows as a director and also a shareholder. Whether it is a corporate company 25% and more than voting of the partners could decide the management personnel.
Companies Act 2013 on public limited Companies:
As per norms of companies act 2013, general meeting should conduct through Public Limited Companies after first completing financial year. Previous act is not mentioning any scheduling working hours. Basing on this companies act it is allotting from 9 A.M to 6 P.M. Furthermore, the general meeting is restricting to conduct on public holidays. These amendments are coming under the section 102. Attending members of the meeting is also depicting in companies act for new public company registration .The promoters and directors are too limited in this process.
Members’ allotment for general meeting:
Public company general meeting can be allowing from five directors to maximum of a thousand members. Board of the members more than fifteen then the meeting could allow thousand to five thousand people to enter the meeting. In spite of the board people are more than fifteen, more than five thousand people will attend the meetings. Why is this crucial for public limited company? Members who have not more than 10% of share calculating from the total share of company. Thus kind of people will allow for voting process. This voting will decide the board members of the new public limited company.
Companies Act 2013 impact on Limited Liability Partnership:
Operating the Limited Liability Partnership is one of the safest ways for flexible business running. It is considering as the separate legal entity. It never involves under the personal modification of any partner or director. Partners limitation are not certainly depicting in this amendments of LLP. All the partners of the LLP have some exert [power and responsibility on LLP. But they never allow any sort of imposing their rights on other partners.
Maintain the annual auditing is the essential one. It is the basic right that the partner can sale his share for other person. It not harm the LLP entity. The new limited liability registration is carving with a mutual agreement. From the private limited firm to huge public business firms also enjoy the securing interest via Limited Liability partnership.
Companies act 2013 restrictions and liberation on OPC:
New One Person Company registration comes with lot of limitations and liberation. Overall it is one of the best choices for choosing the One Person Company. Taxation and document filing are easier while incorporating the OPC. Like many other huge firm sectors, One Person Company also allowing for conducting the annual meeting and maintain the minutes of the meeting. When, the turnover cross its limitation it could convert into the private limited Company.
One Person company is facing the drastic restrictions in some areas. Major complex is it lacking the chance of converting into the Section 8 companies and other trust registration. They need to submit the financial statements to gain welfare on this company. A person can allow to incorporate five OPC at the time of company registration process.
Companies Act 2013 is highly useful one for the new company registration. The basic norms, merits and demerits will help to know the structure of the company. Every mode of company registration is helpful for the certain conditions. When, the business growing and reaching peak it will be convertible one from One Person Company to Public Limited Company. Try to choose your apt volume of business.
Hope this blog will be helpful one for the new company registration seekers. Solubilis is one of the leading and best service providers functioning in Coimbatore. Not only company registration services but also the ISO certification is offering through this corporate firm. Thanks for the expert faculty for helping on this blog ideas