Comparison between Companies Act, 1956 and Companies Act,

2013

Introduction

Company is derived from Latin word companies (Com= together and

panies= bread). Companies Act, 1956 was enacted with the objective to
regulate formation, financing, functioning and winding up of the company.
The Act also states about the procedure for incorporation of company i.e.
how to form a company, its fees procedure, name, constitution, its
members. The act is amended several times which also includes
companies Act 2013 which inserted many clauses like One Person
Company, Women director, raised the number of minimum and
maximum number of members. Companies Act,2013 gave a new path to
the working of companies the act was amended as per the current
situation i.e. concept of women director was added to encourage women
empowerment. This new amended act changed the face of company
sector.

New concepts added under Companies Act, 2013

1. Class action suits for Shareholders

2. Women empowerment in the corporate sector
3. Corporate Social Responsibility
4. National Company Law Tribunal
5. Fast Track Mergers
6. Cross Border Mergers
7. Prohibition insider trading: Increase in number of Shareholders:
8. Limit on Maximum Partners
9. One Person Company.
10. Indian Resident as Director
11. Independent Directors
12. Rotation of Auditors
Difference between Companies Act, 1956 and Companies Act
2013.

1. Financial Year: Under Companies Act,1956 companies had

freedom to select year ending according to their preference while
under Companies Act,2013 it is mandatory for companies to end
their financial year on 31 st March.
2. Format of Financial Statement: format of Financial statement
is given under schedule 6 in Companies Act,1956 while is given
under schedule 3 in Companies Act,2013.
3. Number of partners: Under Companies Act,1956 maximum
number of partners is 10 in banking and 20 in general while under
Companies Act, 2013 maximum number of partners is 50.
4. Shareholders in Pvt Ltd Company: Under Companies
Act,1956 50 while under Companies Act,2013 maximum
number of shareholders in pvt company is 200.
5. One person Company: Under Companies Act,1956 there was
no such concept of OPC while under Companies Act,2013 new
concept of OPC was introduced which defined company runned by
one person as OPC.
6. Issue of Shares at Discount: Under Companies Act,1956 issue
of shares at discount is permitted under section 79 while under
Companies Act,2013 section 53 prohibits issue of shares at
discount.
7. Article of Association: Under Companies Act,1956 Table A
applies where Companies Limited by shares does not adopt their
own Articles of Association. While under Companies Act,2013
Table F applied where Companies did not adopt their own Articles of
Association.
8. Interest in Calls in Arrears: Under Companies Act,1956 is
maximum interest chargeable on Calls-in-arrears was 5% p.a. while
under Companies Act,2013 the maximum interest chargeable on
Calls-in-arrears is 10% p.a.

Note : The above differences have been looked up using google and
meraskill.com