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Brief
THE COMPANIES ACT, 2013
ARRANGEMENT OF SECTIONS
CHAPTER I PRELIMINARY
SECTIONS
1. Short title, extent, commencement and application.
2. Definitions.
CHAPTER II INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO
3. Formation of company.
3A. Members severally liable in certain cases.
4. Memorandum.
5. Articles.
6. Act to override memorandum, articles, etc.
7. Incorporation of company.
8. Formation of companies with charitable objects, etc.
9. Effect of registration.
10. Effect of memorandum and articles.
10A. Commencement of business, etc.
11. [Omitted .].
- Registered office of company.
- Alteration of memorandum.
- Alteration of articles.
- Alteration of memorandum or articles to be noted in every copy.
- Rectification of name of company.
- Copies of memorandum , articles, etc., to be given to members.
- Conversion of companies already registered.
- Subsidiary company not to hold shares in its holding company.
- Service of documents.
- Authentication of documents, proceedings and contracts.
CHAPTER III PROSPECTUS AND ALLOTMENT OF SECURITIES
PART I.—Public offer
23. Public offer and private placement.
24. Power of Securities and Exchange Board to regulate issue and transfer of securities, etc.
25. Document containing offer of securities for sale to be deemed prospectus.
26. Matters to be stated in prospectus.
27. Variation in terms of contract or objects in prospectus.
28. Offer of sale of shares by certain members of company.
29. Public offer of securities to be in dematerialised form.
30. Advertisement of prospectus.
31. Shelf prospectus.
32. Red herring prospectus.
33. Issue of application forms for securities.
34. Criminal liability for mis-statements in prospectus.
35. Civil liability for mis-statements in prospectus.
- Punishment for fraudulently inducing persons to invest money.
- Action by affected persons.
Punishment for personation for acquisition, etc., of securities.
Allotment of securities by company.
- Securities to be dealt with in stock exchanges.
- Global depository receipt.
PART II.—Private placement
42. Issue of shares on private placement basis.
CHAPTER IV SHARE CAPITAL AND DEBENTURES
43. Kinds of share capital.
44. Nature of shares or debentures.
45. Numbering of shares.
46. Certificate of shares.
47. Voting rights.
48. Variation of shareholders’ rights.
49. Calls on shares of same class to be made on uniform basis.
- Company to accept unpaid share capital, although not called up.
- Payment of dividend in proportion to amount paid-up.
- Application of premiums received on issue of shares.
- Prohibition on issue of shares at discount.
- Issues of sweat equity shares.
Issue and redemption of preference shares.
Transfer and transmission of securities.
- Punishment for personation of shareholder.
- Refusal of registration and appeal against refusal.
- Rectification of register of members.
- Publication of authorised, subscribed and paid-up capital.
- Power of limited company to alter its share capital.
- Further issue of share capital.
- Issue of bonus shares.
Notice to be given to Registrar for alteration of share capital.
Unlimited company to provide for reserve share capital on conversion into limited company.
- Reduction of share capital.
- Restrictions on purchase by company or giving of loans by it for purchase of its shares.
- Power of company to purchase its own securities.
Transfer of certain sums to capital redemption reserve account.
Prohibition for buy-back in certain circumstances.
- Debentures.
- Power to nominate.
CHAPTER V ACCEPTANCE OF DEPOSITS BY COMPANIES
73. Prohibition on acceptance of deposits from public.
74. Repayment of deposits, etc., accepted before commencement of this Act.
75. Damages for fraud.
- Acceptance of deposits from public by certain companies.
76A. Punishment for contravention of section 73 or section 76.
CHAPTER VI REGISTRATION OF CHARGES
77. Duty to register charges, etc.
78. Application for registration of charge.
79. Section 77 to apply in certain matters.
80. Date of notice of charge.
81. Register of charges to be kept by Registrar.
82. Company to report satisfaction of charge.
83. Power of Registrar to make entries of satisfaction and release in absence of intimation from company.
- Intimation of appointment of receiver or manager.
- Company’s register of charges.
- Punishment for contravention.
- Rectification by Central Government in Register of charges.
CHAPTER VII MANAGEMENT AND ADMINISTRATION
88. Register of members, etc.
89. Declaration in respect of beneficial interest in any share.
90. Register of significant beneficial owners in a Company.
- Power to close register of members or debenture holders or other security holders.
- Annual return.
[Omitted .].
Place of keeping and inspection of registers, returns, etc.
- Registers, etc., to be evidence.
- Annual general meeting.
Power of Tribunal to call annual general meeting.
Power of Tribunal to call meetings of members, etc.
Punishment for default in complying with provisions of sections 96 to 98.
Calling of extraordinary general meeting.
- Notice of meeting.
- Statement to be annexed to notice.
- Quorum for meetings.
- Chairman of meetings.
- Proxies.
- Restriction on voting rights.
- Voting by show of hands.
Voting through electronic means.
Demand for poll.
- Postal ballot.
- Circulation of members’ resolution.
Representation of President and Governors in meetings.
Representation of corporations at meeting of companies and of creditors.
- Ordinary and special resolutions.
- Resolutions requiring special notice.
- Resolutions passed at adjourned meeting.
Resolutions and agreements to be filed.
Minutes of proceedings of general meeting, meeting of Board of Directors and other meetings and resolutions passed by postal ballot.
- Inspection of minute-books of general meeting.
- Maintenance and inspection of documents in electronic form.
- Report on annual general meeting.
- Applicability of this Chapter to One Person Company.
CHAPTER VIII DECLARATION AND PAYMENT OF DIVIDEND
123. Declaration of dividend.
124. Unpaid Dividend Account.
125. Investor Education and Protection Fund.
126. Right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares.
- Punishment for failure to distribute dividends.
CHAPTER IX ACCOUNTS OF COMPANIES
128. Books of account, etc., to be kept by company.
129. Financial statement.
129A. Periodical financial results.
130. Re-opening of accounts on court’s or Tribunal’s orders.
131. Voluntary revision of financial statements or Board's report.
- Constitution of National Financial Reporting Authority.
- Central Government to prescribe accounting standards
- Financial statement, Board's report, etc.
Corporate Social Responsibility.
Right of member to copies of audited financial statement.
- Copy of financial statement to be filed with Registrar.
- Internal Audit.
CHAPTER X AUDIT AND AUDITORS
139. Appointment of auditors.
140. Removal, resignation of auditor and giving of special notice.
141. Eligibility, qualifications and disqualifications of auditors.
142. Remuneration of auditors.
143. Powers and duties of auditors and auditing standards.
144. Auditor not to render certain services.
145. Auditor to sign audit reports, etc.
- Auditors to attend general meeting.
- Punishment for contravention.
- Central Government to specify audit of items of cost in respect of certain companies.
CHAPTER XI APPOINTMENT AND QUALIFICATIONS OF DIRECTORS
149. Company to have Board of Directors.
Manner of selection of independent directors and maintenance of data bank of independent directors.
Appointment of director elected by small shareholders.
- Appointment of directors.
Application for allotment of Director Identification Number.
Allotment of Director Identification Number.
Prohibition to obtain more than one Director Identification Number.
Director to intimate Director Identification Number.
- Company to inform Director Identification Number to Registrar.
Obligation to indicate Director Identification Number.
Penalty for default of certain provisions.
Right of persons other than retiring directors to stand for directorship.
Appointment of additional director, alternate director and nominee director.
- Appointment of directors to be voted individually.
Option to adopt principle of proportional representation for appointment of directors.
Disqualifications for appointment of director.
- Number of directorships.
- Duties of directors.
- Vacation of office of director.
- Resignation of director.
- Removal of directors.
Register of directors and key managerial personnel and their shareholding.
Members' right to inspect.
- Penalty for default.
CHAPTER XII MEETINGS OF BOARD AND ITS POWERS
173. Meetings of Board.
174. Quorum for meetings of Board.
175. Passing of resolution by circulation.
176. Defects in appointment of directors not to invalidate actions taken.
- Audit committee.
Nomination and Remuneration Committee and Stakeholders Relationship Committee.
Powers of Board.
- Restrictions on powers of Board.
Company to contribute to bona fide and charitable funds, etc.
Prohibitions and restrictions regarding political contributions.
Power of Board and other persons to make contributions to national defence fund, et c.
Disclosure of interest by director.
- Loan to directors, etc.
Loan and investment by company.
Investments of company to be held in its own name.
Related party transactions.
Register of contracts or arrangements in which directors are interested.
Contract of employment with managing or whole-time directors.
Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares.
Restriction on non-cash transactions involving directors.
Contract by One Person Company.
[Omitted].
[Omitted.]
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