Companies Act 2013







In order to simplify and improve laws relating to companies in India the Companies Act, 2013 was passed by the parliament on 16th September 2013. The Act will replace the existing Companies Acts of 1956 and 1990. This document provides a basic understanding of the changes that have been introduced by the Companies Act, 2013 so as to educate the company owners/managers/shareholders about their obligations and rights under this law.

The Companies Act 2013 is legislation under the jurisdiction of the Ministry of Corporate Affairs, India which provides a framework to regulate companies in India. The Act has been enacted by the Indian parliament to replace the earlier Companies Act, 1956. The new act provides greater autonomy and protection to directors as well as financial accountability of the company. This act applies to companies incorporated under both the 1956 and 2013 Acts. The main objective of this act is to encourage companies to expand and operate freely in phase with the national trade and commerce development without restrictions from the Government.

What Does The Companies Act Do


The key provisions are: the Act codifies certain existing common law principles, such as those relating to directors' duties. it transposes into UK law the Takeover Directive and the Transparency Directive of the European Union. It introduces various new provisions for private and public companies.

What are the Objectives Of the Company Act 2013

The main objectives of the companies Act of 2013 are:
  • To protect the interests of the investors by furnishing fair and accurate information in the prospectus.
  • To promote transparency and high standards of corporate governance.
  • To put strict restrictions on insider trading activities.

Read More Related Topics

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Consumer Protection Act 2019

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