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COMPANIES ACT 1956
It was enacted by the Parliament of India on January 18, 1956 and started on April 1, 1956
 It was repealed and replaced by the Companies Act 2013
It is an Act in which rules and regulations for maintaining the books of accounts of a company are
written
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 It contains special laws which a company has to follow while maintaining its books of accounts
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If any company does not follow these rules and regulations, it is prohibited to perform by law of
India
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10
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 An overview of Companies Act 1956
Companies Act 1956 explains about the whole procedure of the how to form a company, its fees
procedure, name, constitution, its members, and the motive behind the company, its share capital, about
its general board meetings, management and administration of the company including an important
part which is the directors as they are the decision makers and they take all the important decisions for
the company their main responsibility and liabilities about the company matter the most
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The Act is 658 sections long
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 It mentions what type on companies their differences, constitution , management, members ,
capital, how should the shares should be issues, debentures, registration of charge, at the end of
the act it concludes the about winding up of a company, discussing the situations a company needs
to be winded up
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In
these companies, the liabilities of members is limited to the extent of the amount not paid by them on
their shares
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b)Companies limited by guarantee 

In some companies, the memorandum of association mentions amounts of money that some members
guarantee to pay
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The company or its
creditors cannot compel them to pay any more money
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Hence, the company can use
all personal assets of shareholders to meet its debts while winding up
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a) One person company 
These kinds of companies have only one member as their sole shareholder
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Unlike other
companies, OPCs don’t need to have any minimum share capital
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In terms
of members, private companies need to have a minimum of 2 and a maximum of 200
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c) Public company 

In contrast to private companies, public companies allow their members to freely transfer their shares to
others
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a) Holding & subsidiary company 
In some cases, a company’s shares might be held fully or partly by another company
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Likewise, the company whose shares the
parent company owns becomes its subsidiary company
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Furthermore, parent companies also exercise control by owning more than 50% of their
subsidiary companies’ shares
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This “significant
influence” amounts to ownership of at least 20% shares of the associate company
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Associate companies can also exist under joint venture agreements

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