Basics of the Company Law
There are various forms to carry out business activities like partnership, sole proprietorship, company, LLP etc. Company is the most complex and widely used form of business for carrying out economic activities at a large scale. There has been a recent change in the Law for corporate entities. The era of Companies Act, 2013 has started. With this Companies Act, 2013, there are various changes that have been brought (regulatory, monetary limits, other limits etc.)
For starting a corporate form of business one can follow a route of One Person Company, Private Company, Public Company, Non Profit Organisation, Nidhi Company etc. depending upon the requirements to fulfill the objects and circumstances. Different Rules and Regulations of the prevailing laws have to be abided by to carry out business in a hassle free manner.
MCA (Ministry of Corporate Affairs ) is the main regulatory Authority for company form of business. there are various limits that have to be fulfilled at the time of incorporation of the company.
The Companies Act, 2013 passed by the Parliament has received the assent of the President of India on 29th August, 2013. The Act consolidates and amends the law relating to companies. The Companies Act, 2013 has been notified in the Official Gazette on 30th August, 2013. Some of the provisions of the Act have been implemented by a notification published on 12th September, 2013. The provisions of Companies Act, 1956 are still in force.
There are various new concepts that have been introduced by the Companies Act, 2013 like OPC, women Directors, CSR, Registered valuers, Rotation of auditors, class action, dormant company, fast track mergers, SFIO, Associate Company, Nidhi company etc.
A small quiz is given below to limelight a few changes that have been introduced by the companies act 2013. Test your Knowledge and check whether you are updated or outdated !
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Question 1 of 8
Right of shareholder/s in connection with general meetings includesCorrect
As provided by Companies act, shareholder/s have the said rights.Incorrect
Question 2 of 8
Penalty for fraud under section 447 of Companies Act,2013 isCorrect
Penalty under section 447 is abovementioned.Provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than 3 yearsIncorrect
Question 3 of 8
Grievances pertaining to commodities can be referred toCorrect
Grievances pertaining to commodities can be referred to Forward Markets Commission (FMC) on their website i.e. http://www.fmc.gov.in/compmngt.aspx?langid=2Incorrect
Question 4 of 8
Right of investor as a debenture holder includesCorrect
Debenture holder is entitled to said right as per provisions contained in Chapter IV of Companies Act,2013.Incorrect
Question 5 of 8
Grievances related to chit funds can be referred toCorrect
Grievances related to chit funds can be referred to Registrars of Chit Funds of the concerned State as per provisions of Chit Funds Act, 1982.Incorrect
Question 6 of 8
Which stands correct in respect of non compliance of secion 136 of Companies Act,2013(Right of members to receive copies audited financial statements)Correct
As per provision of section 136(3).Incorrect
Question 7 of 8
Grievances related to Nidhi Companies can be referred toCorrect
Grievances related to Nidhi Companies can be referred to MCAIncorrect
Question 8 of 8
Right of shareholder/s in connection with winding up of the company includesCorrect
Share holder cand apply for winding up and receive the residual proceeds in case of winding up.Incorrect