Companies Act 1956

The Companies Act 1956 in an Act of the Parliament of India and was passed in the year 1956. The Act enabled formation of companies by registration and also specified the responsibilities of the directors and secretaries of companies. The Act is managed by the Government of India through the Ministry of Corporate Affairs and also the offices of Registrar of Companies, Public Trustee, Director of Inspection, Company Law Board etc. The principles of the Act extend to the whole of India except for the state of Jammu and Kashmir. However, the Act is now replaced by the Companies Act 2013 and is divided into 29 chapters, containing 470 clauses as against 658 in the original Act. It also includes new concepts such as the company of one person. Also, in a private company, the cap on number of persons has been raised to 200 and the system of E-voting is being recognized.

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Edited and Updated 31st May 2014

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