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2014
  • Effective 1st April 2014, the Government of India has repealed the Companies Act, 1956 with the new Companies Act, 2013.
  • We have tried to make a brief overview of some of the important provision applicable to Private Limited Companies in India.

2014
  • Companies Act, 2013 has brought massive changes for private companies as barring a very few, all the exemptions which were available to private companies under the Companies Act, 1956 have been withdrawn in the Companies Act, 2013.
  • In this article, we attempt to throw light on the impact of Companies Act, 2013 on private companies by means of comparison of the significant provisions relating to Private Companies under the Companies Act, 1956 and Companies Act, 2013.

Comparison of provisions relating to PRIVATE COMPANIES under CA, 1956 and CA, 2013

2013

The Companies Bill 2012, passed by the Lok-Sabha introduces a new form of Company by the name of “One Person Company” (OPC). Its concept is parallel to the existing concept of Sole-proprietorship  whereas it shall be recognized as separate legal entity distinct from its promoter and proprietors. This form is already prevalent in some of the developed countries in the world namely, China, USA, Singapore, and many countries in Europe and shall pave its way in India after bill is passed by   Rajya- Sabha.

What is One Person Company?

2013
  1. Incorporation of a One Person Company has been permitted.
  2. Numbers of permissible members in private company has been raised to 200 as against existing limit of 50 members.
  3. Listed companies shall have at least 1/3rd of the total number of directors as Independent Directors and the Central Government may prescribe the minimum number of Independent Directors for any class of public companies.
  4. Nominee director cannot be regarded as Independent Director.
Financial Management