Schedules XIH and XIV wee inserted by the Companies (Amendment) Act 1988 Schedule XIII prescribes the gameness regard the appointment of, mad payment of remuneration to, a Managing or Whole time Director or a Manager without the approval of the Confab Movement in to case oi,PubliG Limited Com, pay or a subsidiary thereof Schedule XIV specifies the rates of depreciation for the purpose of computation of depreciation: under the Act Schedule XV was- inserted by the MRTP (Amendment) Act, 91 winch transferred Sections 108A to 1081 to the Companies Act, :1956, Schedule XV specifies certain industries of national interest upon whose transfer of shares restriction has been imposed. There are also a number of Rules besides Company (Court) Rules and numerous Forms. This Act is based largely on the report of the CompahyLaw Commit, 1952 Popularly known as Babb Committee) and it also follows closely the r net W changes introduced in Banish Company Bawl by the British Companies Act al 1948.
Applicability of the Act. The Companies Act 1956 extends to the whole of India except that
32. 'S: SECRETARIAL PP4CTICE
(iii) as regards the State of Jammu and Kashmir. such of the pry -: - of this Act shall Dot apply or shall apply only with s Itch except
and modifications, with effect from the consumer cements of -A Central Laws (Extension to Jammu and Kashmir) Act. 1968. i e i August 1 9Gt ;) or any subsequent date, to any existing compare canny company registered under Ells Act after 15 August 1955 -. manor be specified by the Central Go Eminent be notify Stan i-. l Official Gazette (Sec. 620-C).
SPECIAL FEATURES
view to protecting the interests of a large number of shareholders and creditors of companies, to help the development of corporate sector on heartily lines and to help the attainment of the alternate ends of social and economic policyoftlle November let, the Cornballs Act, 1956 was not enacted from purely legalistic point of view but it was also based on the changing social and economic needs of the country. Some of to e important speci.qi features of this Act are:
Regarding Pi rooters. It provides more stringent provisions relating to the company promoters and company managements in order to ensure a minimally standard of good beliaviour and business honesty in the promotion and management of companies
Form and Contents. It provides elaborate provisions relating to the form and contents of a 'prospectus', maintenance of acolytes by companies, reduction of share capital, etc., with a view to safeguarding the interests of investors and creditors.