Companies Act
The core statute governing incorporation, share capital, board conduct, financial statements, and corporate restructuring in India.
The Companies Act, 2013 is the primary statute governing every registered company in India, from incorporation through winding up. It sets out how a company is formed, how its capital is structured and altered, how directors and officers must conduct themselves, and how the company reports to shareholders and regulators.
Most day-to-day compliance work for a company secretary or corporate lawyer runs through this Act — board and general meetings, statutory registers, related-party approvals, financial-year and audit timelines, and the mechanics of mergers, demergers, and capital restructuring.
Key statutes & provisions
- S. 2(41)Definition of financial year and the procedure to change it
- S. 149–172Board composition, director duties, and board process
- S. 173–179Board meetings and powers exercisable only by resolution
- S. 188Related-party transactions
- S. 230–240Compromises, arrangements, and amalgamations
Recurring practical questions
Can every company change its financial year freely?
No. A change requires NCLT approval except for specific categories (such as a holding/subsidiary or associate of a foreign company needing alignment), and the application must show sufficient cause.
What triggers a related-party transaction approval?
Any contract or arrangement with a related party as defined under Section 188, subject to board and, above prescribed thresholds, shareholder approval by ordinary resolution.
Articles in this domain
Cornerstone
Financial Year — Concept and Procedure for Change
2026