Corporate Cases

The Companies Act 2013 passed by Parliament received the assent of the President of India on 29th August 2013 and got commenced from 12th September 2013.The Companies Act 2013 is divided into 29 Chapters containing 470 sections 7 Schedules. The basic concept to introduce this Act was to make the process of doing business easily in India. The Act also introduced some new concepts like One Person Company, small and dormant company and Corporate Social Responsibility [CSR]. This law gives guidelines for the governance of companies, organizations and business. It basically lays down the rules and regulations which an organization needs to follow from its incorporation till its dissolution. It regulates the relationship between shareholders, directors, employees, creditors and other stakeholders affiliated to the company or the organization. The Act has given more opportunities to the new entrepreneurs as now even a single person can also form the company under the concept of One Person Company. It has also enabled some wide application of information technology in the conduct of affairs by the corporate world by filing documents in the electronic form. Ministry of Corporate Affairs [MCA] has constituted some special courts also known as National Company Law Tribunal [NCLT] which is a quasi-judicial body that adjudicates issues relating to the Indian Companies and also give punishments and penalties for the offences made under this Act. In the Act, importance to women has also been increased as it has made mandatory to have at least one-woman director in the company. The most important and relevant change which has come into effect is of CSR which aims to ensure that companies conduct their business in a way which is ethical. The main motive to introduce CSR is the practice of integrating social and environmental goals into business operations. The MCA has made the Companies Act,2013 to ensure transparency and also proper functioning in the corporate world.