DescriptionThe long awaited Companies Bill 2012 was passed by Lok Sabha in December 2012 and subsequently passed by Rajya Sabha and got President’s assent in August 2013. The object of new Companies Act is to replace the existing Companies Act, 1956 in order to achieve more transparency, accountability and promote better Corporate Governance in the functioning of the Companies. Except Section 1 of the Companies Act 2013 (“Act”), which is coming into force at once, remaining provisions of the Act shall come into force, as and when they are notified in official gazette by Central Government. Key highlights of the Act are: · Division of Companies Act, 2013 into 29 Chapters, 470 Sections and 7 Schedules.· Addition of more than 30 new definitions.· Introduction of new concepts viz. One Person Company, Private Placement, Independent Directors, Appointment of Women Director, Duties of Directors, Rotation of Auditors, Registered Valuer, Corporate Social Responsibility, Nidhi Companies, Class Action.· Prohibition of issue of shares on discount, restrictions on Public Deposits.· Enhanced coverage in Director’s Report, Introduction of Code of Conduct for Independent Directors.· Rationalization of provisions related to Revival and Rehabilitation of Sick Companies.· Constitution of National Company Law Tribunal and Appellate Tribunal, National Financial Reporting Authority.· Mandatory compliance with Secretarial Standards.· Constitution of Special Courts to facilitate speedy trial of offences under the Act.