Companies Act 2013 is the holy grail for anything that is related to corporates, starting from a Company’s birth, i.e., incorporation of the Company, till the figurative death of a company, also referred to as winding up of a company, or dissolution of a company. The Companies Act 2013 regulates all matters pertaining to companies, their directors, shareholders, and other stakeholders.
Section 1 of the Companies Act 2013 is the preliminary section of the Companies Act 2013 that clarifies the short title, extent and applicability of the Act. Interpretation of the preliminary section of the Act aids in understanding the entire statute.
As the Act states, the Companies Act applies to the Whole of India, which is defined under Article 1 of the Constitution of India, as the term ‘Whole of India’ includes all territories of India, all states and all union territories as specified in Schedule I, and other territories as acquired.
Applicability of the Act
- All Companies incorporated under this Act, or any previous Companies Act
- Insurance companies, except for companies that are inconsistent with the provisions of IRDAI 1999, or the Insurance Act 1938
- Banking Companies, except the ones that are inconsistent with the provisions of the Banking Regulation Act 1949
- Companies engaged in the supply/generation of electricity, except those that are inconsistent with the Electricity Act, 2003.
- Any other Company governed by any Special Act, for the time being in force, except if the said provisions are inconsistent with the provisions of such Act.
- Such body corporate, incorporated by any Act, for the time being in force, as the Central Government may, by notification, specify in this behalf, subject to such exceptions, modifications or adaptations as may be specified in the notification.
To conclude, Section 1 of the Companies Act is the base of the entire Corporate Law, which sets a strong foundation for all Companies that are applicable under the said Act.
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