Companies Act, 2013
Architecture and Significance
The Companies Act, 2013 is the primary statute governing companies in India, replacing the Companies Act, 1956. It received Presidential assent on August 29, 2013 and introduced sweeping reforms to corporate governance, transparency, and accountability. Key structural features include: mandatory Corporate Social Responsibility (CSR) under Section 135 (2% of net profit for eligible companies); the establishment of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) as specialised adjudicatory bodies; mandatory independent directors on boards of public companies; introduction of One Person Companies (OPCs); and mandatory rotation of auditors for large companies. The 2026 Amendment Bill continues the process of updating this framework through decriminalisation of technical offences and easing compliance.
- Section 135 (CSR): Companies with net worth ≥ ₹500 crore, or turnover ≥ ₹1,000 crore, or net profit ≥ ₹5 crore must spend 2% of average net profits on CSR.
- NCLT (constituted June 1, 2016) handles oppression and mismanagement (Sections 241-242), insolvency, mergers, and liquidation.
- NCLAT hears appeals against NCLT orders; further appeal lies to the Supreme Court.
- The 2019 Companies (Amendment) Act had already decriminalised 16 offences and converted 11 from compoundable to in-house adjudication.
● Tracked since February 25, 2026 · last seen March 27, 2026 · updates as the daily brief publishes