Transitional provisions before we discuss any further, it is necessary to touch upon the key concepts introduced in schedule ii as amended to the 20 act. The companies act 20 regulates the formation and functioning of corporations or companies in india. The companies act 20 passed by the parliament has received the assent of the president of india on 29th august, 20. Stock exchanges corporatization, demutualization and integration act, 2012. In this article you can find multiple choice questions on companies act with answers. Companies must have their financial year ending on 31 mar every year. The article deals with the distinction between companies act 1956 and companies act 20. The act consolidates and amends the law relating to companies. The 20 act is divided into 29 chapters containing 470 sections as against 658 sections in the companies act, 1956 and has 7 schedules. Comprehensive and authoritative commentary on the new companies act 20. Explore the companies act 20 and companies act 1956. Key highlights of the 18th edition of ramaiya a guide to companies act 20. Section 25 companies, under the companies act 1956, are companies formed for promoting commerce, art, science, religion, charity or any other useful object. The 20 act is divided into 29 chapters containing 470 clauses as against 658 clauses of the earlier companies act, 1956 and has 7 schedules.
The 1956 act has been in need of a substantial revamp for quite some time now, to make it more contemporary and relevant to corporates, regulators and other stakeholders in india. When such an association of persons is registered under the companies act, it becomes an artificial person with perpetual succession and common seal. The act contains the mechanism regarding organisational, financial, managerial and all the relevant aspects of a company. Section 25 company is one of the popular forms of non profit organisation in india.
Be it enacted by parliament in the sixtyfourth year of the republic of india as follows. An act to consolidate and amend the law relating to companies and certain other associations. Updated and amended bare acts in pdf format of companies act 1956 and companies act 20. The longawaited companies bill 20 got its assent in the lok sabha on 18th december, 2012 and in the rajya sabha on 8th august, 20. We have also given the answers for the multiple choice questions mcq on companies act 1956.
The indian parliament has passed the companies bill, 20 on 8 th august 20. Presentation on companies act 20 by ca authorstream. After having obtained the assent of the president of india on 29th august, 20, it has now become the companies act, 20 ca 20. India has principally agreed to the implementation of ind as by revamping schedule vi of companies act 1956 being the first constructive step in the journey. These organization require massive investments and the hazard involved could be very excessive.
A person or an association of persons intending to be registered under section 8 of the companies act, 20 as a limited company a has in its objects the promotion of commerce, art, science, sports, education, research, social welfare. Many of the new insertions and amendments in companies act 20 augur well for going ahead with the implementation in indas. Company act 1956 it is the most important piece of legislation that empowers the central government to regulate the formation, financing, functioning and winding up of companies. The history of indian company law began with the joint stock companies act of 1850. This schedule replaces schedule xiv to the companies act, 1956 the 1956 act with effect from 1 april 2014. As you know that companies act, 20 has been published in the gazette for public information with the information that it will become applicable once it is notified by the central government ministry of corporate affairs to replace the present companies act, 1956. The companies act, 1956 existing act contains 658 sections and xv schedules. Industrial has revolution led to the emergence of huge scale enterprise businesses. The companies act 20 is an act of the parliament of india on indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company. A brief on section 8 company under companies act, 20. The pdf file you are about to download is not created by writinglaw. Multiple choice questions on companies act with answers.
The word company means an association formed by a number of persons for some common object. The companies act 20 has replaced companies act 1956. Full text containing the act, companies act, 1956, with all the sections, schedules, short. Government under the companies act, 1956 before the commencement of this act and. Companies act with its variations is a stock short title used for legislation in botswana, hong kong, india, malaysia, new zealand, south africa and the united kingdom in relation to company law. The companies act, 1956 now companies act, 20 trotal. Different provisions of the companies amendment act, 2017 including any amendments, references in any provisions there in, shall come into force on such date or dates as the central government may, by notification in the official gazette appoints. The companies act, 20 passed by the parliament has received the assent of the president of india on 29th august, 20. April 2020 edition of my ebook on the companies act, 20 is available for sale from april 1, 2020. Companies act, 1956 bare acts law library advocatekhoj. In the process, much of the aforesaid content has been left, to be prescribed, in the rules.
Definitions of company, existing company, private company and public company 4. Table containing provisions of companies act, 20 as notified up to date and corresponding provisions thereof under companies act, 1956 s. Distinction between companies act 1956 and companies act 20. Some of the provisions have been implemented on 12th september, 20. The companies act 20 is an act of the parliament of india on indian company law which. Commencement and applicability of companies act, 20 aubsp. Companies act 20 vs companies act 1956 the companies act, 20 has been passed by lok sabha as well as rajya sabha and the president has given his consent to the same in august 20. Since then a cumulative process of amendment and consolidation brought us to the most comprehensive and complicated piece of legislation, the companies act 1956. The three basic types of companies which may be registered under the act are. The act has replaced the companies act, 1956 after receiving the assent of the president of india on 29 august 20.
The act came into force on 12 september 20 with only certain provisions of the act. All clauses of the articles of association of the company are being replaced completely to bring it in line with the provisions of companies. Companies act, 1956 1 of 1956 so repealed under section 465 of. Pdf companies act 1956 and 20 pdf download, high quality. Rectification by company law board of register of charges.
If you agree then only proceed to download companies act 20 pdf. Impact of new companies act 20 on corporate governance. In this act, unless the context otherwise requires, 1 abridged prospectus means a memorandum containing such salient features of a. The companies act, 20 has been notified in the official gazette on 30th august, 20 but the provisions of this act shall come into force on such dates as the central government may notify in the. Also, to understand the points where companies act 20 has got an edge over companies act 1956. The bill for an act with this short title will usually have been known as a companies bill during its passage through parliament companies acts may be a generic name either for legislation bearing.
Companies act, 1956 shall continue to be proceeded with as if such inspection, investigation or inquiry has been ordered under the corresponding provisions of this. An act to consolidate and amend the law relating to companies. Stock exchanges corporatization, demutualization and integration amendment act, 2015. Introductionthe word company is amalgamation of the latin word com meaning with or together and pains means bread. An attempt has been made to reduce the content of the substantive portion of the related law in the companies act, 20 as compared to the companies act, 1956 1956 act. The companies act 20 is an act of the parliament of india, divided into 29 chapters containing 470 sections and has 7 schedules. This an act to consolidate and amend the law relating to companies. Companies act in pdf is available for students and professionals. Section 3 1 of the companies act 20 states that a company may be formed for any lawful purpose by an unlimited company. Indian companies act 1956 was an act of the parliament of india, enacted in 1956. Ebook on companies act 20 in pdf april 2020 edition. The companies act, 20 provides for the kinds of companies that can be promoted and registered under the act. The 20 companies act also intends to improve corporate governance by requiring disclosure of nature of concern or interest of every director, manager, any other key managerial personnel and relatives of such a director, manager or any other key managerial personnel and reduction in threshold of disclosure from 20% to 2%.
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