This article is written by Ms Kamakshi, a 4th year student of REVA university

The Companies Act, 2013 was introduced to provide a general framework and set of rules for Indian companies. The law is a comprehensive and comprehensive law that covers all aspects of corporate activity. The Companies Act, 2013 was enacted to facilitate the economic development and prosperity of the country by making it easier for Indian companies to incorporate and operate their businesses. The law also aims to improve corporate governance in India. The objectives behind the passage of this law are: 

to provide a comprehensive framework for business regulation in India;

 2) to make it easier for Indian companies to set up and operate their businesses; 

3) Promoting corporate governance in India. 

4) Improving the country’s economic development by promoting entrepreneurship. 

The Companies Act, 2013 is the law that regulates the conduct of companies in India. It was enacted by the Government of India on 1st April 2013 and came into force on 1st April 2014. The Companies Act 2013 has been criticized for being clear in certain areas. Such a place becomes a corporation under this law. The law does not define what constitutes a company and leaves the decision to the courts. The Companies Law 2013 also does not provide specific penalties or sanctions for violations of this law. This has resulted in conflicting rulings from different courts, confusing the interpretation and implementation of this law. The Companies Act, 2013 was passed by the Indian Parliament to create a strong and effective regulatory framework for Indian companies. The Companies Act 2013 introduced a new concept for board meeting minutes. Minutes must be approved by all members present. A new idea was also introduced: a company secretary who manages the affairs of the company.

Purpose of the Act: The Companies Act 2013 regulates how companies operate. Enumerate the rights and duties of society and its members. This will come into effect on 1st April 2013 and will apply to all companies incorporated under this Act or whose incorporation was renewed after 1st April 2013. The Companies Act 2013 was enacted to change the way companies operate by providing a set of rules governing how companies operate and their rights and obligations to their stakeholders. The law came into force on 1 April 2014 after being passed by Parliament in December 2012.

Aim of the Act: The Indian government introduced it to regulate the functions of Indian companies. The Companies Act 2013 aims to improve the quality of corporate governance and protect investors from fraud. The law also aims to promote competition in the market and increase corporate transparency. It also aims to promote sustainable development and environmental protection, which are key aspects of its goals. The Companies Act, 2013 is a new law passed by the Government of India to regulate the business environment in India. The Companies Act, 2013 is a new law passed by the Government of India to regulate the business environment in India. This law came into force on April 1, 2014 and contained provisions such as: Companies must not make statements or publish advertisements that are false or misleading in any material respect. The Company shall not make statements that may damage the reputation of others. Businesses must not make statements that defame their products or services. Businesses must not engage in unfair practices. The Companies Act 2013 was enacted to address issues surrounding the business environment and facilitate business. It is a law passed by the Indian parliament. This is the first law enacted in India for company formation. The Companies Act 2013 is a set of laws governing companies in India. It has many features that make it easy to set up and run your business. The law contains the following provisions: – Company establishment – company registration – Name and address of registered office – Director registration number – Shareholder agreement and share transfer deed – Board decisions – Duties and responsibilities of directors – Duties of company secretary

Landmark Cases under Company Law

Solomon vs Solomon Corporatio:

 facts of the case:  Aaron Salomon’s business was incorporated in 1892, with his wife, daughter, four sons, and himself as shareholders. Mr Salomon, the company’s managing director, sold the company for his £39,000, leaving him £10,000 in debt as a result. Edmund Broderip paid Mr Salomon an advance of £5000 as collateral for the bill. Sales soon plummeted, strikes ensued, and business faltered. Edmund sued Salomon for increased security because of his position and obligations at the company. Judgement:  In this case, the founder of the company, Mr. Salomon, is protected from personal obligations to creditors because the company is a separate legal entity from its shareholders. The concept of corporation, introduced in the Companies Act 1862, is upheld by the courts.

Royal British Bank v. Turkand: 

 facts of the case: Mr. Turkand was the official manager (liquidator) of the insolvent Camerons Coalbrook Steam, Coal, Swansea and Rafah Railway Company. It was established in 1844 under the Limited Partnership Law. The company had issued his €2,000 bond to the Royal British Bank to guarantee the company’s current account statements. The bond was signed by two directors and a secretary and was under the company seal. The plaintiff, Royal British Bank, sued him for nonpayment. The company said directors can only borrow resolutions of the company if authorized by the registered deed of liquidation (the articles of incorporation). Defendants also allege that no resolution was passed authorizing the issuance of the Notes and that the Notes were not issued without the approval and approval of the Company’s stockholders.

 Judgement: Sir Jervis felt that the judgment of the Queen’s Court should be upheld. I tended to believe otherwise. His impression is that the reproduction decision is advanced enough to meet the Deed of Settlement criteria. According to Sir Jarvis, securities authorize directors to borrow in bonds an amount or amounts that can be borrowed from time to time by resolution passed by the company’s general meeting and repetition of resolutions passed by the general meeting. The Directors authorize the Borrowings to be borrowed for such periods and at such interest rates as the Directors deem appropriate, subject to the Settlement Act and the Acts of Congress. However, the resolution allows the directors to borrow that amount. Good enough seemed to me, said Sir John Jarvis CJ. In this case no other points arise and need not be determined. For, whether we regard it as approval and rejection, or as a peculiar non-estimate fact, dissent seems to pose no obstacle to the progress of society. It can be assumed that dealing with these companies is not the same as dealing with other partnerships and that the parties involved should read the Articles of Incorporation and Branch Law. But they are not obliged to go further. And instead of prohibiting borrowing, the parties will allow borrowing under certain terms of the Settlement Act.

Conclusion: The Companies Act 2013 was replaced by his Companies Act 2018. The new law provides a clearer and better framework for companies registered in India. The Companies Act, 2013 was enacted by the Indian Parliament on 26th May 2013. It replaced the previous law, the Companies Act 1956. The new law provides a clearer and better framework for companies registered in India. A new law was enacted to address the lack of uniformity in corporate law between states and to properly enforce the law.

Refrences: Royal British Bank v. Turkand

                  Solomon vs Solomon Corporation