Highlights of Companies Act 2013

HIGHLIGHTS OF COMPANIES ACT 2013

As per “Companies Act 2013” following provisions required instant action:

1) The Act is organised in 29 chapters, 470 sections & 7 schedules.

2) Substantial part of this act is in the form of Rules.

3) The Act introduced the concept of CEO, CFO and KMP.

4) The Act also introduced concept of one Resident director.

5) Loan taken from shareholders is now treated as deposit.

6) Companies must provide companies details such as Name, CIN, Registered Office Address, Email, Phone no. etc. in its documents Including Letter Heads & Other Stationery.

7)  Digital signature certificate is now mandatory for all person applying for DIN.

8)   Now Book of Accounts may be kept in Electronic Form.

9)  Now any documents & agreements can only be signed by KMP  Or by person authorised by the Board on their behalf.

10) Common seal of organisation is compulsorily required for authentication Of all documents, earlier it was not mandatory.

11) Now Cash Flow will be a part of Financial Statement in all companies.

12) New concepts such as OPC, Small Companies, Registered Valuer, COBetc. are brought forward in this new versatile Act.

13) For conversion of private company into public company requires approval of NCLT, earlier such power was with central government.

MEANING OF “RELATIVE” AS PER COMPANIES ACT 2013

                 

  As per New Companies Act 2013, Relative means any person who is related  to another person as if ;                         

  1) They are husband and wife        

  2) They are members of a Hindu Undivided family                  

One can be related with other in such a manner mentioned below :

  i) Father, here the term father also includes "step father".  

  ii) Mother, here the  term mother includes  "step mother".  

  iii) Son, here the term mother includes "step son"
  iv) Son's wife .          

  v) Daughter .          

  vi) Daughters husband .

  vii) Brother, here brothere also includes "step brother".
  viii) Sister, here sister also included "step sister ".