Highlights of the Companies Act of 2013

 Highlights of the Companies Act of 2013



  • The companies act has introduced a new concept called the class action suits for shareholders with the view of making the shareholders understand and provide them with enough knowledge on their rights.

  •  The Act gives more powers to shareholders regarding the approval of certain transactions.

 

  • The Act stipulates the appointment of at least one woman director on the board.

 

  • The Act demands a certain class of companies to set aside a certain amount of money for activities that promote corporate social responsibility.

 

  • The companies act has proposed a simple procedure for mergers and amalgamations of a certain class of companies after getting approval from the government

 

  • The Act has increased the number of shareholders in a Private limited Company from 50 to 200.

 

  • The Act provides for the entrenchment of articles of association.


  •  It is mandatory for every company to have at least one director who has stayed in India for not less than 182 days in the previous calendar year.

 

  • The Act allows the rotation of auditors and audit firms in case of publicly traded companies.

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