Companies Act, 2013 in 30 Minutes

Introduction

The Companies Act, 2013 is the main law that governs companies in India. It explains how companies are formed, managed, and regulated. This quick guide helps you understand the Act in just 30 minutes, in simple English.

1. What is the Companies Act, 2013?
   It is a law that replaced the Companies Act, 1956. It focuses on better corporate governance, transparency, and accountability.
2. Types of Companies
   Under the Act, companies can be:
   • Private Limited Company
   • Public Limited Company
   • One Person Company (OPC)
   • Section 8 Company (Non-profit)
   • Producer Company
3. Company Incorporation
   A company is formed by:
   • Getting Digital Signature (DSC)
   • Applying for Director Identification Number (DIN)
   • Filing SPICe+ forms with the Registrar of Companies (ROC)
4. Memorandum & Articles of Association
   
   • MOA defines the objectives of the company
   • AOA contains internal rules and regulations
5. Share Capital & Shareholders
   The Act explains:
   • Types of share capital
   • Rights of shareholders
   • Issue and transfer of shares
6. Directors & Key Managerial Personnel
   
   • Minimum and maximum number of directors
   • Appointment, resignation, and removal of directors
   • Duties and responsibilities of directors
7. Board Meetings
   
   • Minimum 4 Board Meetings in a year
   • Proper notice, quorum, and minutes are mandatory
8. General Meetings
   
   • Annual General Meeting (AGM)
   • Extra-Ordinary General Meeting (EGM)
   • Voting and resolutions
9. Accounts & Audit
   
   • Proper books of accounts must be maintained
   • Statutory audit is compulsory
   • Financial statements must be filed with ROC
10. Annual Filings
    Key annual filings include:
    • AOC-4 (financial statements)
    • MGT-7 (annual return)
11. Annual Filings
    Key annual filings include:
    • AOC-4 (financial statements)
    • MGT-7 (annual return)
12. Loans, Related Party Transactions
    The Act regulates:
    • Loans to directors
    • Related party transactions
    • Disclosure and approvals
13. Corporate Social Responsibility (CSR)
    Certain companies must spend on CSR activities as per Section 135.
14. Compliance & Penalties
    Non-compliance leads to:
    • Monetary penalties
    • Disqualification of directors
    • Legal action
15. Winding Up of Company
    The Act provides rules for:
    • Voluntary winding up
    • Tribunal-led winding up
16. Key Focus of Companies Act, 2013
    The Act provides rules for:
    • Transparency
    • Accountability
    • Protection of stakeholders
    • Ease of doing business