1956 VS 2013

COMPANIES ACT 1956 VS 2013

The main points of difference showing a quantitative comparison between Companies Act 1956 and 2013  are:s- (as on 31 december 2013)

1) Sections-

In 1956 act there were 658 sections.

Now in 2013 act , the sections have been reduced to 470.

2) Chapters-

In 1956 act there were 13 chapters.

Now in 2013 act , chapters have been increased to 29.

3)  Schedules-

In 1956 act there were 15 schedules.

Now in 2013 act , schedules are only 7.

4) Number of clauses-

In section 2 of 1956 act there were 67 definitions.

Now in section 2 of act 2013 there are 95 definitions.

QUID PRO QUO

 something in return for one thing

 QUID PRO QUO
It is a latin abbreviation for something in return of one thing. It is the consideration in exchange of one thing.
In layman's language, giving one thing for another. It is one of the most essential conditions for a contract to be valid 
as per Section 10 of  Indian Contract Act,1872.
(however there are certain exceptions to it, where a contract can be valid without a consideration)
But such a consideration must be lawful.

e.g. A person promises to sell an elephant to other person. Other person promises him to pay a price money on such sale.
Both the promises are consideration for each others' promise. Hence quid pro quo is there.

Its other uses are in the cases of sexual harassments/assaults in workplace etc . The use of quid pro quo can also be seen  in politics, where sometimes it can take the face of blackmailing as well.

A COMPANY

 ASSOCIATION OF PERSONS - A CO.

A CO. seems a matter of three letters of  english language.
But for those who are directly, indirectly in any way connected to it, it could be their sole means of income for making both ends meet or a special achievement in their lives to which they have dedicated their entire lives.

WHAT IS A COMPANY ?

A CO. is usually a group of persons, associated or come together for a common purpose.

Company is derived from a latin word  'cum panis' which means "with bread".

DEFINITION OF COMPANY AS PER COMPANIES ACT 1956:

SECTION 3 OF COMPANIES ACT 1956 defines a company as " any company formed and registered under the companies act , or an existing company " .

eg: of company : ITC, IBM


IN WORDS OF PROFESSOR HANEY  " a company is an incorporated association, which is an artificial person created by law, having a separate legal entity , with perpetual succession and a common seal".

A company may be a public or a private company, with share capital or without , limited or unlimited.

IMAGE SOURCE- WWW.GOOGLE.COM

THE COMPANIES ACT 1956

To start with "THE COMPANIES ACT 1956" . The companies in India are governed and regulated by the 'Companies Act 1956'. CORPORATE LAWS includes companies act. For every act of/by the company, the law consists of many provisions governing it.

Thus starting from a company's formation , incorporation , its membership , financial arrangements, validity of business , its winding up (closure of company), there is a provision in this act. The law relates to each of these facts about a company and much more such as appointment of directors , meetings of company.

Companies act came into force from April 1956. It was enacted by the parliament in the Sixth Year of the Republic of India . It extends to the whole of the India .These provisions are for both internal and external management of the company. 

IMAGE SOURCE-WWW.GOOGLE.COM

WHY CORPORATE JARGONS

CORPORATE JARGONS

What is a jargon ?

A jargon is a language peculiar to a particular trade, profession or a group. These are  technical terms that are related to a particular subject. It could be medical, business, trade, corporate world or what not.

Corporate jargons

Corporate jargons are the technical terms used in the everyday life in the corporate world.

Many of us are unaware of the terms that we come across while reading newspapers or the abbreviations that are used by all the media channels  eg: CAG , MCA, SEBI, WHISTLEBLOWER. 

(THESE TERMS ARE TALKED ABOUT  IN FURTHER POSTS)

The detailed information about all the technical terms and the fundamental language that is used in corporate world is mentioned here. This can help to improve and enhance your understanding of the corporate world and also help you to keep yourself abreast with the constant changes that are taking place in the corporate and business world the next time you watch channels like ndtv, tv18, etc. or read information about companies.

The professionals become so only when they know well the basics which form the grounds for the corporate subject matter.

Why Corporate jargons ?

Knowing these jargons is the first step towards understanding the concept of how things work in the corporate world. 

The recent and previous amendments in the COMPANIES ACT, INCOME TAX ACT AND INCOME TAX RULES , NEW BUDGETS EVERY YEAR  have made it all the more important to keep yourself updated with the old and new added terms widely used in this industry.

eg : DIN, COMPANY, COO, CEO, E FILING , DEPOSITORIES.