Company Law amendments - Series I

There are plenty of amendments in company law after the introduction of 2013 Act. But there is no need to panic for the IPCC and CA final students as I am going to present all such amendments through my blog and students can go through my articles as they will be more than sufficient for them. As you all know, famous authors are yet to publish company law book after these amendments and there is confusion going all around. So, I have taken an initiative to present these amendments in front of you. There will be one article daily on these amendments, so stay tuned for the further updates. CA final students can also join my law batch at 5:30pm in Star Plaza's third floor.

One-person company: The 2013 Act introduces a new form of entity to the existing list i.e. aside from creating a public or  private limited company, the 2013 Act enables the creation of a new entity a ‘one-person company’ (OPC). As per the section 3(1) of the Companies Act 2013, an OPC means a company with only one individual as its member.

Private company: The 2013 Act introduces an amendment in the meaning for a private company, inter-alia, the new necessity extends the limit of the number of members from 50 to 200. [section 2(68) of 2013 Act].

Amendments in the limit of number of members for Private Company

Members	Prior to Companies Act 2013	After  amendment
Minimum	2	One man company(OPC)
Maximum	50	200

Small company: The meaning small company has been defined as a company, except a public company.

(i) Paid-up share capital of which does not surpass 50 lakh INR or such higher amount as may be approved but it shall not be  more than five crore INR

(ii) Turnover of which according to its previous profit-and-loss account does not surpass two crore INR or such higher amount as may be prescribed but it shall not be more than 20 crore INR:

As specified in the 2013 Act, this section will not be relevant to the following:

• A holding company or a subsidiary company

• A company registered under section 8(formation of company with charitable objects)

• A company or body corporate governed by any particular Act [section 2(85) of 2013 Act]

Dormant company: The 2013 Act mentions that a company can be classified as dormant when it is created and registered under this 2013 Act for an upcoming scheme or to clasp an asset or intellectual property and has no important accounting transaction. Such a company or an inactive one may be relevant to the Registrar of Companies(ROC) in such way as may be set for obtaining the position of a dormant company.[Section 455 of 2013 Act]