CA Foundation Exam > CA Foundation Videos > Business Laws for CA Foundation > The Companies Act, 2013 - 2
The Companies Act, 2013 - 2 Video Lecture | Business Laws for CA Foundation
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FAQs on The Companies Act, 2013 - 2 Video Lecture - Business Laws for CA Foundation
| 1. What is the purpose of the Companies Act, 2013? |  |
Ans. The Companies Act, 2013 is a legislation in India that regulates the incorporation, functioning, and management of companies. Its purpose is to ensure transparency, accountability, and good governance in corporate entities.
| 2. What are the major changes introduced by the Companies Act, 2013 compared to the previous Companies Act? | |
Ans. The Companies Act, 2013 brought about several significant changes compared to the previous legislation. Some of the major changes include the introduction of one-person companies, stricter regulations for corporate social responsibility, the requirement of mandatory rotation of auditors, enhanced protection for minority shareholders, and increased focus on corporate governance.
| 3. How does the Companies Act, 2013 promote corporate governance? | |
Ans. The Companies Act, 2013 promotes corporate governance by introducing various provisions such as the requirement for independent directors on the board of certain companies, mandatory internal audits, disclosure of director's interests, and increased accountability of directors and officers. These provisions aim to ensure transparency, protect the interests of shareholders, and enhance the overall governance of companies.
| 4. What is the process for incorporating a company under the Companies Act, 2013? | |
Ans. The process for incorporating a company under the Companies Act, 2013 involves several steps. It includes obtaining a Digital Signature Certificate (DSC) for the proposed directors, obtaining Director Identification Numbers (DIN), reserving the company name, drafting the memorandum and articles of association, filing the necessary forms and documents with the Registrar of Companies, and paying the prescribed fees. Once these steps are completed and the Registrar approves the incorporation, the company is considered legally established.
| 5. How does the Companies Act, 2013 protect the interests of minority shareholders? | |
Ans. The Companies Act, 2013 includes provisions to protect the interests of minority shareholders. It mandates that certain decisions, such as mergers, acquisitions, or changes in the company's capital structure, require the approval of a specified percentage of minority shareholders. It also provides for class action suits, allowing minority shareholders to collectively take legal action against any oppressive or prejudicial acts by the company or its majority shareholders. These measures aim to ensure fairness and prevent the exploitation of minority shareholders.
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Dec 22, 2024 Last updated |
Video Description: The Companies Act, 2013 - 2 for CA Foundation 2024 is part of Business Laws for CA Foundation preparation.
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