The Companies Act 2013 is an act that was passed by the Indian Parliament in 2013 regarding Indian company law. This act controls the creation of companies, the obligations of companies, directors, and the dissolution of companies. The Companies Act of 2013 is comprised of 29 chapters, each of which contains 470 sections (compared to the Companies Act of 1956, which had 658 parts), and it includes 7 schedules. On the other hand, as of right now, there are just 484 (470 minus 43 plus 57) provisions in this Act. After gaining the assent of the President of India on August 29, 2013, the Act partially superseded The Companies Act of 1956. This occurred after the Act was given the green light by the President. On the 30th of August in 2013, Section 1 of the Companies Act of 2013 became fully operational. On September 12, 2013, 98 various parts of the Companies Act came into effect with a few amendments, such as increasing the maximum number of members for private companies from 50 to 200. Previously, the maximum number of members was 50. This legislation introduces a new word called a "one-person business," which will be a kind of private firm that is subject to just 98 parts of the Act's notification requirements. As of the first of April in 2014, a total of 183 new sections entered into effect.
Following this, the Ministry of Corporate Affairs produced a notice that exempted privately held enterprises from the purview of many parts of the Companies Act.
The law that was passed in 2013 includes specifications for enhanced obligations of corporate leaders in the IT industry. This improved India's protections against organised cyber crime by making it possible for CEOs and CTOs to be punished in the event of an IT failure.
Minister of Corporate Affairs, and he presented the Companies (Amendment) Bill, 2020. Minister of Corporate Affairs In the year 2020, it was approved by the parliamentary body.