Companies Act 2013

Question 1

Define Companies Act 2013

Answer 1

The companies act 2013 defines a company as a company incorporated or registered under the companies act 2013 or any previous laws

Question 2

Define company

Answer 2

A company is an artificial entity in its legal form.

Question 3

Features of Company

Answer 3

1. Members are independent from the company
2. Separate legal entity - It is distinguished from the shareholders of the company. It has its own independent corporate existence.
3. Perpetual Succession - The company has its existence from the time of incorporation to winding up. members may come and go but the company survives.
4. May have a common seal - As per the 2015 amendment to companies act 2013, it has been made optional and all documents which require affixing common seal may now instead be signed by 2 directors or 1 director and a CS of the company
5. Limited liability - The liability of the members of a limited company having a share capital is limited to the extent of the nominal value of the shares held by them. The shareholders cannot be called upon to pay more than the unpaid value of his shares.
6. Artificial legal person
7. Companies Act 2013 - enacted to consolidate or amend the law relating to companies which used to exist under Companies Act 1956
8. Seperate Property - Company has right to acquire and transfer properties in its own name.
9. Transferability of shares - The shares of the me bers except in the private company may be freely transferable
10. Capacity to sue and be sued - Being a seperate legal entity the company is having capacity to do…..

Question 4

Rule Based Legislations?

Answer 4

Companies Act 2013 is a rule-based legislation with 470 sections and 7 schedules

Question 5

Aim of Companies act, 2013?

Answer 5

To Improve corporate governance
Simplify Regulations
Strengthen minority Investors