S. No. Particulars Companies Act, 2013 Companies Act, 1956 1 Applicability Section 230 – 240* Section 390 -396A 2 Cross Border Mergers Inbound mergers (Foreign Company merging into Indian Company as well as outbound foreign company mergers (Indian Company merging into foreign Company with RBI approval) are allowed. Permits only inbound foreign Company merger (Foreign Company …
S. No. Particulars Companies Act, 2013 Companies Act, 1956 1. Compulsory Internal Audit Sec.138. Prescribes companies of a particular class to appoint an Internal auditor who can be a CA or CWA or of any other professional as may be decided by the Board. No Such Provision existed 2. Rotation of Statutory Auditors Sec.139(3): Members …
Audit & Auditors – Companies Act, 2013 vs. Companies Act, 1956 Read More »
S. No Particulars Companies Act, 2013 Companies Act, 1956 Changes 1 Applicability Section – 179 read with Rule 8 of the Companies(Meetings of the Board and its Powers) Rules, 2014 Section – 291 & 292 — 2 Powers of Board The Board of Directors shall exercise the following powers on behalf of the company by …
Powers of the Board – Companies Act, 2013 Vs Companies Act, 1956 Read More »
Sr. No. Subject Matters Provisions under Companies Act, 1956 Provisions under Companies Act, 2013 1 Types of companies that can be formed Public company or private company which can be limited by shares/limited by guarantee or unlimited company. Besides public & private company, One Person Company (OPC) can also be formed. 2 Validity of …
Incorporation of Companies under Companies Act, 1956 vs 2013 Read More »
Introduction: In the Indian scenario, postal ballot is relatively a new concept which was introduced in the Companies Act, 1956 by insertion of a new section, namely Section 192A through an amendment made to the said Act in year 2001. Section 192A of the Companies Act, 1956 states that for the purpose of this section, …
Sr. No Particulars Sections of Companies Act, 2013 Sections of Companies Act, 1956 1 Statement to be annexed to the notice of general meeting Section 102: Requires mentioning the interest of every promoter, director, manager or key managerial person in any other company which is related to or will be affected by the proposed resolution, …
Introduction: Insider Trading, as may be familiar to lot of us, is principally the act of dealing in securities with the advantage of having asymmetrical access to unpublished information which when published would impact the price of securities in the market. India seems to be having a long standing tryst with the notion of Insider …
Sl. No. Particulars Companies Act, 2013 Companies Act, 1956 1. Number of directors Section 149(1) Minimum No. of directors: Private Company – 2 (Two) Public Company – 3 (Three) Maximum No. of directors: Can be increased beyond 15 (Fifteen) by means of special resolution Section 259 Minimum No. of directors: …
What are “Related Party Transactions”? Provision on Related party transactions are as mentioned below: Section -188 of Companies Act, 2013 Section -297 & 314 of Companies Act, 1956 Now, let’s compare; Sl. No. Nature of Difference Companies Act, 2013 Companies Act, 1956 1. Approval from Board sale, purchase or supply of any goods or materials; …
Related Party Transactions under Old Act & New Act Read More »
Particulars Section 186 of Companies Act, 2013 (“the 2013 Act”) Section 372A of Companies Act, 1956 (“the 1956 Act”) Heading of Section Loan and Investment by Company Inter Corporate-Corporate Loans and Advances. Number of Sub-Section 13 9 Restriction on multi layered Investment A Company shall unless otherwise prescribed, make investment through not more than two …
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