The first companies act was proceed in India in 1850 and it is for company registration and their tranferability of shares. Amending act of 1857 consulted the legal registration with or without limited liability. Companies act 1856 reversed all the previous acts and which act offered inter alia for registration, rules and winding up of companies and other organizations. The companies (amendment) act 1963 presented for the appointments of company’s board and constitution of the company board managements. It also authorized by the government to remove and involved managerial personnel in cases of fraud, etc. The development of company law in India as mentioned earlier, is the precious child of the English parents.
Development of Indian Company Law
The object of the amendment act of 1947 is came into force from first February of 1975 and introduced major changes and provide some importance in the act 1956. Most of the registration made under this act for registering a company. Today, there are many different types of company registrations are registered such as Private Limited Company, Limited Liability Partnership (LLP), One Person Company (OPC), Public Limited Company, Sole Proprietorship, Partnership, Subsidiary Company, Unlimited Company, Project Office, Branch Office and Joint Venture Company. Some entities can be managed by both Indian and Foreign promoters.
The object of the amendment act was to introduce a part of public interest in the working of the corporate field. Two major changes was introduced by this act 1947 as given below:
Deemed to be public limited companies
Section 43A, was included to the companies act 1956 in the year 1960. Under this section a private limited company would become a public limited company where not less than 25% of the private limited companies share capital would also become a public company in two other cases.
Acceptance of deposits from the public
A vital measure was established by the amendment act concerned to the confirmation of deposits from the public. So, the requests for deposits or confirmation of deposits were to be made in following with the rules mentioned this act. Company and their development is more important for all major purposes and it is mandatory to registration their company name.
Maintenance of a separate account for unclaimed dividend by public limited companies
Public limited companies would have to place in a different account unpaid or unclaimed dividend within six months. In these accounts the amounts could be managed for payment of the dividend and the period of expiration of 3 years, it is transferred to the government.
Control over foreign-owned companies
All foreign companies and their subsidiaries came within the scope of the amended act. The appointment of whole-time directors, working directors, managing directors and their fees, rights are also need this company law board’s approval. So, they set on the aforesaid footing as company registration in Bangalore and all other major cities.
Appointment of company law board benches in metropolitan cities
Company law board benches have been located in the metropolitan cities like Mumbai, Kolkata, Chennai and Bangalore for resolving matters which are relating to confirmation of changes in the MOA of a company. The extension of time for registering of particulars which are relating to registration of charges. When the announcement of general body meeting in case of uselessness.
Prohibition on the appointment of a sole-selling agent
The government may ban the appointment of sole-selling agent where demand for goods of any category mentioned by the government is considerably in excess of supply or production of such goods. The sole-selling agent will not be required for the services to create a market for such goods.
Appointment of a whole-time secretary
A share capital is important and it is having all the companies at a limit of 2 crores or more shall have a whole-time secretary. A secretary is not appointed by a body corporate or a firm. Their registration is also made simple, because of the development of company law board.
The amendments act 1977 make some changes in section 634A, 620, 293, 220 and 58A.
Section 58A authorized by the government to allow extension of time or to exempt any company in deserving cases from all under this section 58A.
The section 293 managed a company to form donations for charitable purposes upto Rs.25000. Every company directors makes this payable amount to their respective company.
Companies (Amendment) Act 1985:
The amending act modified under section 293A with a new section. It is for Non-government companies that are being not less than three financial years.
Companies (Amendment) Act 1988:
Form on the suggestions made by the professional committee under the act 1956 have earned in the administration of the act 1956. In the companies act, it was the first time specified that certain size of all public limited company have a whole-time or managing director.
The major alterations found by the amendment act 1988 are:
Meaning of secretary lead in line with the sense of company secretary under the company secretaries act 1980. It contains a separate owing specified qualifications. These amendments are major changes in the act 1988 and become more useful for all business persons.
The idea of company secretary in execution was established for the first time in the companies act. A performing secretary has been allowed to register statement of compliance under section 149 and 33. All listed company is need to register their annual return under section 161 and a practicing secretary is also signed in that compare to other signatories. If a company secretary is absence, the practicing secretary is eligible to verify that needs of schedule XIII is mentioned on that.
The amended act on other things which has also establish an independent company law board to work such judicial functions. It has also allocated with the need of obtaining confirmation on government for managerial appointments.The development of a company would be more important in the Indian metropolitan cities like Bangalore, Chennai, Kolkata, Mumbai, etc.