Understanding The Companies Act, 2013: An In-Depth Guide
The Companies Act 2013 is a crucial piece of legislation in India that regulates the formation, governance, and dissolution of companies. It replaced the outdated Companies Act, 1956, and brought in several new provisions to improve corporate governance, accountability, and transparency. The primary objective of the Companies Act is to provide a framework that facilitates the smooth operation of companies while safeguarding the interests of stakeholders such as shareholders, employees, creditors, and the government. In this blog, we will cover various aspects of the Companies Act, 2013, from types of companies to corporate governance, penalties, and social responsibility. Types of Companies Under the Companies Act, 2013 The Companies Act, 2013 recognizes various types of companies, each with distinct characteristics and compliance requirements. These include: Private Companies : Limited number of shareholders, not listed on the stock exchange. Public Companies : Larger shareholder bas...