For the history of India’s company law, 2013 was a big year. An amendment was made to the Companies Act and we came up with a law called the Companies Act, 2013. This law contains everything regarding governing the companies in India. This law is not something that is new to India. The 1908 British Company Act was the stepping stone to the 1913 evaluation of the Company Act in India. After that in 1956, we revised the Companies Act, and the final amendment to this Company Act was done in 2013. There were multiple rules under Companies Act.
It has 470 sections and seven schedules but still, it is not complete and that is why there are many rules under Companies Act to support or to complete the mentioned law. Company Law of 2013 came up with many improvements and its goal is to maintain transparency in the corporate world. It came up with many new things like corporate social responsibilities, personal company, etc.
What are the Rules?
Before understanding the meaning of rules under Companies Act it’s important to understand the meaning of the act. An act is a legal document that came into existence when any bill was passed by both houses of the Parliament and then it got the assent of the president in case of central and the governor in case of state. The act is a document that contains governing laws related to one subject matter.
For example Companies Act has all the governing laws related to companies. Whenever any act came into existence it didn’t include each and everything. There are certain things that developed through time and those things will be added through the rules. In short, we can say that an act is something that tells us what to do and rules are the supporting document of the act that tells us how to do it.
Components of Companies Act 2013
The Companies Act came in 2013 and after that, there are many rules attached to it. The list of rules under Companies Act is given below:
- Rules that came in 2014 regarding Companies (Definitions and Details)
- Regulations which came in 2017 for Companies (Limitation on Number of Layers)
- Company (Incorporation) Rules under companies Act which came in 2014
- Rules which came into 2014 regarding Companies (Prospectus and Allocation of Securities)
- Rules that came in 2014 regarding Companies (Concern of Global Depository Receipts)
- Rules that came in 2014 regarding Companies (Share Capital and Debentures)
- Rules that came in 2014 regarding Companies (Acknowledgment of Deposits)
- Rules that came in 2014 regarding Companies (Registration of Charges)
- Rules that came in 2014 regarding Companies (Management and Administration)
- Rules that came in 2018 for Corporations (Significant Beneficial Owners)
- Rules which came in 2014 for Companies (Declaration and Payment of Dividends)
- Rules that came in 2014 regarding Companies (Accounts)
- Regulations for the National Financial Reporting Authority which came in 2018
- The National Financial Reporting Authority (Meeting for Transaction of Business) Rules which came in 2019
- The National Financial Reporting Authority Rules under companies Act which came in 2018
- Rules which came in 2014 regarding Company Rules for Corporate Social Responsibility
- Indian Accounting Standards Rules for Companies which came in 2015
- Regulations for Corporations (Audit and Auditors) which came in 2014
- Regulations for Companies (Cost Records and Audit) which came in 2014
- Filing of Documents and Forms in XBRL Rules which came in 2015 for Companies
- Companies (Appointment and Qualifications of Directors) Rules which came in 2014
- Companies (Board Meetings and its Powers) Rules which came in 2014
- Companies (Appointment and Compensation of Managerial Personnel) Rules which came in 2014
- Company Inspection, Investigation, and Inquiry Rules which came in 2014
- Companies (Arrests in connection with Serious Fraud Investigation Office Investigation) Rules which came in 2017
- Companies (Compromises, Arrangements, and Amalgamations) Rules which came in 2016
- Regulations for Companies (Mediation and Conciliation) which came in 2016
- Regulations for Companies (Registered Valuers and Valuation) which came in 2017
- Removal of Name of Companies from the Register of Companies rules which came in 2016
- Rules which came in 2014 for the Rehabilitation of Sick Companies
- Regulations for Companies (Authorized to Registered) which came in 2014
- Regulation of Foreign Companies Rules which in 2014 for the companies
- Rules for Corporations (Registration Offices and Fees) which came in 2014
- Rules of Nidhis, which came in 2014
- 2016 Rules of the NCLT
- The 2016 Rules of the NCLAT
- The 2016 NCLT (Procedure for Reducing Company Share Capital) Rules
- Regulations for Companies (Transfer of Pending Proceedings) which came in 2016
- The Companies (Adjudicating Penalties) Rules which came in 2014
- Division II: The Companies (Miscellaneous) Rules which came in 2014
- The Businesses (Creation and Maintenance of Databank of Independent Directors) Rules which came in 2019
- Rules for Companies (Winding Up) which came in 2020
List of Rules Under Companies Act
Companies Act which came in 2013 has a total of 470 sections and 7 schedules. It is a long legislation that is very vast in nature. There are specific governing laws and rules under companies law which have been given below for a better understanding of the Companies Act, 2013:
- Company Registration and related documentation
- Prospectus and Securities Allotment of the companies
- Debentures and share capital of the companies
- Deposits Accepted by Businesses are also given here
- Registration fees and other related expenses
- Audit and Auditors Management for the success of the company
- Administration Dividend Declaration by the company
- Payment Accounts of Companies must be maintained
- Meetings of the Board and its Powers must be held as per the laws and regulations
- Appointment and Qualifications of Directors and Method for the same
- Selection and Compensation of Managerial Personnel in various situations
- Inspection, Inquiry, and Investigation if needed
- Compromises, agreements, and fusions are also required
- Preventing oppression and poor leadership is necessary
- Bringing Sick Companies Back to Health and the procedure regarding the same
- Winding Up procedure of the Companies Incorporated Outside of India,
- Fee details for Government Companies
- Jurisdiction of courts
Conclusion
The Companies Act of 2013 is a comprehensive legislation in India governing various aspects of company operations. To provide practical guidance, numerous rules under Companies Act have been formulated. These rules under Companies Act cover areas like incorporation, governance, audits, and more. These rules support the Act’s goal of transparency and responsible corporate behavior, benefiting stakeholders and enhancing India’s corporate landscape. One more thing that is very important regarding rules and acts is that if there is any conflict between an act and a rule, the act will always prevail. Rules are the subordinate texts of the Acts.
