Page 36 - Banking Finance June 2017

ARTICLE

Comparison between Companies Act 2013 and Companies Act 1956

Sr. Points Companies Act 2013 Companies Act 1956
No.
1. Financial Year Companies must have their financial Companies were permitted to have
year ending on 31 Mar every year financial year ending on a date decide
by Company
2. Formats of Financial Statement Schedule 3 Schedule 6
3. Maximum No of Partners As per rules, subject to Max 100. 10 in banking business and 20 in any
currently is 50 other business
4. Max Shareholders in Pvt Ltd 200 excluding past and present 50 excluding past and present
Company employees employees
5. One Person Company Company which has only one person Did not exist
(natural person) as its member
6. Issue of Share at discount Section 53 prohibits issue of shares Section 79 permitted issue of shares at
at a discount However, Section 54 a discount.
permits issue of ESOPs to its
employees at a discount.
7. Security Premium Reserve Utilisation of Securities Premium Utilisation of Securities Premium
Reserve is provided in Section 52(2) Reserve was provided in Sec 77A and 78
8. Interest in Calls in Arrears In the absence of a clause in the In the absence of a clause in the Articles
Articles of Association, the of Association, maximum interest
maximum interest chargeable on chargeable on Calls-in-arrears was
Calls-in-arrears is 10% p.a 5% p.a.
9. Interest in Calls in Advance In the absence of a clause in the In the absence of a clause in the Articles
Articles of Association, the maximum of Association, the maximum interest
interest payable on Calls-in-advance payable on Calls-in-advance was 6% p.a
is 12% p.a.
10. Article of Association Table F applies where Companies Table A applied where Companies did
Limited by shares does not adopt not adopt their own Articles of
their own Articles of Association. Association

Benefits granted to Small Companies It has a total paid up share capital of not more than 50 lakh
rupees or any other prescribed amount not exceeding five
under Companies Act, 2013 crore rupees; or

Companies Act, 2013 has introduced the concept of small
companies in India. As per S. 2 (85) of the Companies Act, It has a turnover of not more than two crore rupees or any
2013 there are 4 essentials for being a small company: other prescribed amount not exceeding 20 crore rupees.
Y It is not a public company, holding company or a sub-
sidiary company. This means, for a company to be classified as a small com-
pany, it should not be a public company or a holding com-
Y It is not registered under S. 8 of the Act. pany or a subsidiary company. If a company falls under any
Y It is not governed by any other special Act. of these categories, it cannot be a small company (no mat-
Y With regards to share capital/turnover: ter howsoever low is the turnover or total paid up share

36 | 2017 | JUNE | BANKING FINANCE

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