COMPANIES ACT 1956 
                                                             VS 
                       COMPANIES ACT 2013 
                                                                             
                                                                    
                                                                    
                                                                    
                                        Whats new, whats old 
                                                                 & 
                                         Whats hot, whats not 
                                                                    
                                                                    
                              
                      
                                                                                                                                                          
                                                                                                                                                          
                     Contents 
                     THE COMPANIES ACT, 2013............................................................................................................ 3 
                         An overview of Companies Act 2013 ............................................................................................ 3 
                         Comparative study on some of the provisions of Companies Act 1956 and Companies Act 
                         2013 .................................................................................................................................................... 4 
                            I.           Significant changes in Definitions and new inclusions ..................................... 4 
                            II.          Incorporation ............................................................................................................... 8 
                            III.         Directors ...................................................................................................................... 10 
                            IV.          Share capital ............................................................................................................... 12 
                            V.           Acceptance of deposits by Companies .................................................................. 14 
                            VI.          Investments ................................................................................................................ 14 
                            VII.         Books of Accounts and Financial Year .................................................................. 15 
                            VIII.        Reports ........................................................................................................................ 16 
                            IX.          Prospectus, Raising of funds & Allotment .......................................................... 16 
                            X.           Utilising Securities Premium Account ................................................................. 17 
                            XI.          Annual returns and related issues ......................................................................... 17 
                            XII.         Notices, Meetings, Quorums, Voting, Resolutions, Minutes ........................... 19 
                            XIII.        Internal Audit ............................................................................................................ 21 
                            XIV.         Cost Audit ................................................................................................................... 21 
                            XV.          Statutory compliance ................................................................................................ 21 
                            XVI.         Transfer to reserves ................................................................................................... 21 
                            XVII.        Dividends ................................................................................................................... 22 
                            XVIII.       Auditors ...................................................................................................................... 22 
                            XIX.         Nomination & Remuneration committee ............................................................. 25 
                            XX.          Prohibitions & Restrictions ..................................................................................... 25 
                            XXI.         Company Secretary ................................................................................................... 25 
                            XXII.        Investigations............................................................................................................. 25 
                            XXIII.       Corporate Restructuring .......................................................................................... 26 
                            XXIV.        Class action Suits ...................................................................................................... 27 
                            XXV.         Valuations................................................................................................................... 27 
                            XXVI.        Winding up ................................................................................................................ 27 
                            XXVII.  Other legal provisions .............................................................................................. 28 
                 
                     XXVIII.  National Financial reporting Authority ................................................................ 28 
                     XXIX.    Schedules – Companies Act 2013 ........................................................................... 30 
                 
                                                                 
                 
                 
                                                                 
                                                 THE COMPANIES ACT, 2013 
                                                                             th
                                     (Passed in both houses of Parliament on 8  August 2013) 
                We all know that the 57 year old Companies act, 1956 has now got replaced with the new Companies 
                Act, 2013. This write up has been made with an effort to compare some of the major clause / issues in 
                the new Companies Act, 2013 and the Companies Act 1956. 
                                                 History of Companies Bill 2012
                         •Enacted as Companies Act 2013, with President assent on 29th August 2013 
                 2013    •Bill passed in Rajya Sabha on 8th August 2013 
                 2012    •Companies Bill passed in Lok Sabha on 18th December 2012 
                 2011    •Introduced in Lok Sabha on 14 th December 2011      
                         •Bill referred to standing committee for review , report tabled in Lok Sabha on 31st August 
                 2010     2010 
                 2009    •2008 Bill modified and re introduced on 3rd August 2009 
                         •Companies bill 2008 introduced in Lok sabha on 23rd October 2008 for the first time, to 
                 2008     replace 52 year old Companies Act , 1956 
                         •But it lapsed due to dissolution of parliament. 
                                                                                                                     
                 
                                               An overview of Companies Act 2013 
                                                                 
                                                       470 CLAUSES 
                                                                 
                                                                                 VII SCHEDULES 
                            29 CHAPTERS 
                                                                                            
                                     
                                                    COMPANIES ACT 2013 
                       
                       
                      Comparative study on some of the provisions of Companies Act 1956 and Companies Act 2013 
                               Caption                        Companies Act 1956                               Companies Act ,2013                            New 
                                                                                                                                                            Clauses 
                                                     I.         Significant changes in Definitions and new inclusions 
                   A)  Associate company                                                          In relation to another company, means a                     2(6) 
                                                                                                  company in which that other company 
                                                                                                  has a significant influence, but which is 
                                                                                                  not  a  subsidiary  company  of  the 
                                                                                                  company  having  such  influence  and 
                                                                                                  includes a joint venture company. 
                                                                                                   
                                                                                                  Explanation.—For  the  purposes  of  this 
                                                                                                  clause,  “significant  influence”  means 
                                                                                                  control  of  at  least  twenty  per  cent  of 
                                                                                                  total  share  capital,  or  of  business 
                                                                                                  decisions under an agreement 
                   B)  Control                         For the purposes of this Act,  “control”,  shall  include  the  right  to                             2 (27) 
                                                       a  company  shall,  subject  to            appoint  majority  of  the  directors  or  to 
                                                       the provisions of sub- section  control  the  management  or  policy 
                                                       (3),    be  deemed  to  be  a  decisions  exercisable  by  a  person  or 
                                                       subsidiary of another if, but  persons  acting  individually  or  in 
                                                       only if,                                   concert, directly or indirectly, including 
                                                                                                  by  virtue  of  their  shareholding  or 
                                                             a)  that  other  controls  management  rights  or  shareholders 
                                                                  the  composition  of  agreements or voting agreements or in 
                                                                  its Board of directors;         any other manner 
                                                                  or 
                                                         b)  that other- 
                                                         i)  where          the         first- 
                                                            mentioned company is an 
                                                            existing       company          in 
                                                            respect      of    which  the 
                                                            holders       of     preference 
                                                            shares  issued  before  the 
                                                            commencement  of  this 
                                                            Act have the same voting 
                                                            rights  in  all  respects  as 
                                                            the  holders  of  equity 
                                                            shares,        exercises        or 
                                                            controls more than half of 
                                                            the total voting power of 
                                                            such company; 
                                                         ii) where          the         first- 
                                                            mentioned  company  is 
                                                            any       other       company, 
                                                            holds  more  than  half  in 
                                                            nominal  value  of  its 
                                                            equity share capital; or] 
                                                                   
                                                       c)  The        first-    mentioned 
                                                            company is  a  subsidiary 
                                                            of any company which is 
                                                            that other's subsidiary. 
                                                        
                   C)  Director                        includes any person                        Means a director appointed to the Board                     2(34)