What is the Difference between Companies Act 1956 and Companies Act 2013?

Difference between Companies Act 1956 and Companies Act 2013

The major differences between Companies Act of 2013 and Companies Act of 1956 are as follows:

Companies Act 2013	Companies Act 1956
A single person can form a company.	A single person cannot form a company.
The maximum number of persons allowed in a private company is 200.	The maximum number of persons allowed in a private company is 50.
Articles may contain entrenchment provisions.	No enabling provisions to contain entrenchment Articles.
Notice to ROC about a change of address to be given within 15 days of the change.	Notice to ROC about a change of address to be given within 30 days of the change.
Approval is required from the Tribunals to convert a public company into a private company.	The central government’s approval is required to convert the public into a private company.
This Act recognizes the electronic mode of sending documents to the company.	The electronic mode of sending documents to the company is not recognized.
Extract of annual return in prescribed format is to be given as part of Board’s report.	Extract of return is not required to be given as Board’s report.
A person can be appointed as a proxy for a maximum of 50 members.	There is no such restriction in the 1956 Act.
A postal ballot applies to all companies.	A postal ballot is not applicable under this Act.
Past losses need not be set off before declaring the dividend.	Past losses have to be set off before declaring the dividend.
It is not compulsory to transfer profits to the reserves of the company.	It is compulsory to transfer at least 10% of profits to the company’s reserves.
The company is permitted to keep a book of accounts in electronic mode.	The company need not keep a book of accounts in electronic mode.
CSR spending of at least 2% of average net profits during the 3 preceding years is mandatory.	CSR spending is not compulsory.
Certain classes of companies compulsorily appoint a woman director.	It is not compulsory to appoint a woman director.
The maximum number of directors in public and private companies is 15.	The maximum number of directors in a public company is 12.

Summary:

What is the difference between Companies Act 1956 and Companies Act 2013?

The key difference between Companies Act 1956 and Companies Act 2013 is that as per the Companies Act 1956, a person cannot form a company, whereas in the Companies Act 2013, a person can form a company.

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