Article

(Kumar, 2014 ) COMPANIES ACT, 2013: AN ANALYSIS OF KEY RULES ISSN-2347-7571 ISSN-2347-7571 , Published by: Sai Om Publications

The Companies Act 2013 became operational from 1 st  April 2014, replacing the 56 years old companies act. The research was conducted to have a insight about the key rules, implications and provide information with respect to the Companies Act, 2013. The Act states that: 1. Companies can have max fifteen directors until a special resolution is passed 2. One director should have stayed in India for at lea st 182 days 3. Certain of class companies must appoint at least one woman director 4. A person can be a director in only 20 companies out of which only 10 can be  public. A new concept of Independent director has been introduced to safeguard stakeholder’s decisions. The Act also makes audit committees mandatory for listed companies and some other class of companies. Companies meeting requirements should also have CSR Committee of Board.

The Act also increases disclosures

requirements with respect to annual return, boards report and related party transactions. Also many investor protection measures have been introduced to safeguard the interest of investors. Also various penalties have been introduced on companies for not fulfillment of their obligations.

The Act is forward looking and would ensure improved governance and more transparency