Preliminary

Question 1

When did The Companies Act receive assent from president and when was is launched on Gazette

Answer 1

29th August, 2013, 30th August, 2013

Question 2

Mention dates when sections of The Companies Act were enforced

Answer 2

Section 1- 30th August, 2013
Next 98 sections on September 12, 2013
Next 143 sections on April 1, 2014

Question 3

Why was The Companies Act required and state the constituents

Answer 3

The Companies Act was enforced to simplify regulations, strengthen investor interest and improve CG. It has 470 section in 7 scheduled and 29 chapters

Question 4

Define Section 1 of The Companies Act, 2013

Answer 4

Section 1 states the following
- Title: The act should be referred to as The Companies Act, 2013
- Date of commencement: This section shall come into force at once. Remaining on such date as notified by the central government by notification in official Gazette.
- Applicability: Applies to whole of India; to any company incorporate under this act or any previous company laws. Includes Insurance(Insurance Act, 1938 & Insurance Regulatory and Development Authority Act, 1999) , banking (Banking Regulation Act, 1949) , companies involved in electricity generation (Electricity Act, 2003), body corporate established under a special act, company incorporated by a special act

Question 5

Define Section 2 of The Companies Act, 2013

Answer 5

Section 2 of companies Act contains definitions. According to clause 95, any words or expressions used and not defined in this act but is define in the Securities Contract (Regulation) Act, 1956 or The Securities and Exchange Board of India Act, 1992, The Depositories Act , 1996 shall have meaning assigned to it in these acts

Question 6

What happens to any words or expressions used and not defined in this act

Answer 6

According to clause 95, any words or expressions used and not defined in this act but is define in the Securities Contract (Regulation) Act, 1956 or The Securities and Exchange Board of India Act, 1992, The Depositories Act , 1996 shall have meaning assigned to it in these acts

Question 7

Define Section 2(1)

Answer 7

Abriged Prospectus: Memorandum having salient features of a prospectus as specified by the securities and exchange board of India

Question 8

Define Section 2(2)

Answer 8

Accounting standards are standards of accounting or any amendment thereto as may be defined in section 133 of this act.

Question 9

Define Section 2(3)

Answer 9

Alter or Alteration are making any addition, omission or substitution

Question 10

Define Section 2(4)

Answer 10

Articles refers to articles of association as originally framed, altered from time to time, for pursuance of any previous companies law or this act

Question 11

Define Section 2(5)

Answer 11

Associate company is any company in which other company has significant influence but is not a subsidiary includes joint venture {significant influence = at least 20% & joint ventures is a joint agreement whereby parties have joint control of the agreement and have rights to the net asset of the agreement}

Question 12

Define Section 2(7)

Answer 12

Auditing standards refer to standards of auditing or any amendment thereto for companies or class of companies referred in 144 sub section 10

Question 13

Define Section 2(8)

Answer 13

Authorized or nominal capital refers to such capital as referred to in memorandum of association as the maximum amount of share capital

Question 14

Define Section 2(10)

Answer 14

Board of director or board is the collective body of directors of company

Question 15

Define Section 2(11)

Answer 15

Body corporate or corporation - company incorporated outside India not including co-operative society registered under any law relating to co-operative society

Question 16

Define Section 2(12)

Answer 16

Books and Paper and Books or Paper refers to books of accounts, deeds, writings, documents, minutes and registers maintained on paper or electronic form

Question 17

Define Section 2(13)

Answer 17

Books of accounts refers to records maintained in respect to assets & liabilities, money received or expended, all sales and purchase of goods and services by the company and if company belongs to companies or class of companies mentioned in section 148 then items of costs mentioned in the section

Question 18

Define Section 2(14)

Answer 18

Branch office is any establishment described as such by the company

Question 19

Define Section 2(15)

Answer 19

Called up capital is such part of capital which has been called up for payment

Question 20

Define Section 2(16)

Answer 20

Charge is interest or lien on property or any asset of a company or its undertaking or both as security, includes a mortgage

Question 21

Define Section 2(17)

Answer 21

Chartered Accountant

Question 22

Define Section 2(18)

Answer 22

CEO is an officer of a company who has been designated as such by it

Question 23

Define Section 2(19)

Answer 23

CFO is a a person appointed as CFO of the company

Question 24

Define Section 2(20)

Answer 24

Company is any company incorporated under this act or any previous company law

Question 25

Define Section 2(21)

Answer 25

Company limited by guarantee refers to company having its liability to its members being limited by memorandum to an amount as may be contributed by the members to the assets of the company in events of being wound up

Question 26

Define Section 2(22)

Answer 26

Companies Limited by share are companies having their liability to its members limited by memorandum to an amount, if any, unpaid on the shares held by them

Question 27

Define Section 2(26)

Answer 27

Contributory is the person liable to contribute toward the assets of the company in events of being wound up

Question 28

Define Section 2(27)

Answer 28

Control, having the right to appoint majority of board of directors or to control the management and policy making exercisable by person or persons acting individually or in concert , directly or indirectly with the virtue of voting agreement or shareholding agreement

Question 29

Define Section 2(30)

Answer 29

Debentures is stock or bonds or any other instrument evidencing a debt whether having charge against asset or not. Shouldn't include : ones referred in chapter III D of Reserve bank of India Act, 1934 or any instrument prescribed by the gov

Question 30

Define Section 2(35)

Answer 30

Dividend includes interim dividend

Question 31

Define Section 2(34)

Answer 31

Directors means director appointed to the board