Use BookMyEssay:The Companies Act, 1956 Assignment Help

The Companies Act, 1956 describes the entire process of the method of forming a company, its name, fees procedure, constitution, members, the intention behind the company, general board meetings, share capital, administration, and management of the company that includes a vital portion, which is the directors because they tend to work as decision makers.

The Indian Government administered The Companies Act, 1956 via the Offices of Registrar of Companies, Ministry of Corporate Affairs, Company Law Board, Official Liquidators, Director of Inspection, Public Trustee, etc.

The ROC (Registrar of Companies) deals with the incorporation of novice companies as well as the administration to run a company. Since the commencement of The Companies Act, 1956 was amended multiple times, the amendments of 1988, 90, 96, 2000, 11, and 13 were noteworthy.

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Policies and Objectives of the Companies Act, 1956

Every company plays a significant role in all economies. In India, the Companies Act, 1956 commonly regulates the financing, formation, winding up, and functioning of companies. This act suggests regulatory methods related to every relevant aspect that includes financial, managerial, and organizational aspects of a company. The winding-up matters are within the area of the High Courts’ jurisdiction. Regulation of the management and financial aspects comprise the chief attention of The Companies Act, 1956.

In the corporate sector functioning, the liberty of companies is hugely vital besides the shielding of shareholders and investors. The Companies Act works as the balancing factor between a couple of competing factors; investor protection and management autonomy.

The Chief Objectives of the Companies Act, 1956

• To shield the interests of many shareholders because there exists the separation of ownership from mgmt. in companies.
• To defend the creditors’ interests.
• To aid the companies’ development in India because corporate sectors comprise a hugely vital part of the economy.
• To arm the govt. with sufficient powers for intervening in a company’s affairs in the public interest according to the procedure as the law prescribed.

Provisions of The Companies Act, 1956

Article Three of The Companies Act, 1956 explains the definition of companies, the kinds of companies that can get formed, like holding, private, public, limited by shares, subsidiary, unlimited, etc. In Article 10 E, this act explains the constitution of the board of a company. It also explains the name of the companies, tribunals, memorandums, and alterations that can be made.

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