“Dive into the distinctions between Companies Act 2006 (UK) and Companies Act 2013 (India). From shareholder requirements to director limits and AGM norms, explore the unique provisions shaping corporate governance in each jurisdiction. Uncover the nuances in the appointment of company secretaries and the protection of minority shareholders. A comprehensive guide to navigating the regulatory landscapes of the UK and India.”
The Companies Act 2006 UK and the Companies Act 2013 India are two different pieces of legislation that govern companies in their respective countries.
The UK Companies Act 2006 is a comprehensive piece of legislation that sets out the legal framework for companies in the UK, covering everything from the formulation of a company to its dissolution. The Indian Companies Act 2013 is similarly comprehensive, covering everything from the formulation of a company to its winding up. However, there are differences between the two acts in terms of their provision, such as the number of shareholders required to form a company, the minimum and maximum number of directors and the requirements for holding of annual general meetings.
The Companies Act 2006 in the UK allows a company to have a single shareholder, which means that a company can be owned and controlled by a single individual. There is no maximum number of shareholders prescribed the Act, but for practical reasons, most of private companies limit the number of shareholders to not more than 50.
The Companies Act 2013 in India allows a Private company to have a minimum of two shareholder and a maximum of 200 number of shareholders. However in order to be listed on a stock exchange, a company must have a minimum of 200 Shareholders and meet other requirements.
The Companies Act 2006 in the UK requires a Private company to have at least one director, while a public company must have at least two directors. There is no maximum limit on the number of directors specified in the Act.
The Companies Act 2013 requires a Private company to have at least two directors, while a Public company must have at least three directors. A Company can have a maximum of 15 directors.
The Companies Act 2006 in the UK requires every company to hold an annual general Meeting each year, within six months of the end of the company’s Financial Year. The AGM must be held at a Physical location, and all shareholders must be given at least 21 days notice of the meeting. The purpose of conducting an AGM is to present the Company’s Annual accounts, and reports to the shareholders and to elect or re- elect directors.
A company must hold its AGM within a period of six months from the end of the financial year. However, in the case of a first annual general meeting, the company can hold the AGM in less than nine months from the end of the first financial year.
Another difference between the two acts is the requirements for the appointment of company secretary. Under the Companies Act 2006, the appointment of a company secretary is optional for private companies, while public companies must have a company Secretary. In contrast, the companies Act 2013, the appointment of company secretary is made by convening a Board meeting after giving notice to all the directors of the company. The Act states that every private company with a paid up share capital of ten crore or more mandates to appoint a company secretary.
Further Companies Act 2013 includes several provision related to the protection of minority shareholders, which are not present in the Companies Act 2006. For example, in companies act 2013 requires that companies obtain the approval of minority shareholders before entering into certain related party transactions and it allows minority shareholders to take legal action against a company director if they feel that their rights have been violated.
In conclusion, while the companies act 2006 and companies act 2013 shares some similarities, there are several key differences between this two legislation.
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