Question

On which of the following company does the Companies Act, 2013 confer certain privileges?
(i) Private Companies
(ii) One Person Company
(iii) Small Companies
Select the correct answer form the options given below:

• A. (i), (ii), (iii) of the above
• B. (ii) and (iii) of the above
• C. (i) of the above
• D. (i) and (iii) of the above

Answer 1

The correct option is A (i), (ii), (iii) of the above

Privileges provided to a private company:

The Companies Act, 2013 provides certain exemptions and privileges to the private companies by virtue of a notification issued by the Ministry of Corporate Affairs on June 5, 2015. Section 67 of the Act has been exempted from being applied to the private companies subject to the fulfillment of certain conditions. Also, Section 43 and Section 47 of the 2013 act have been relaxed in their applicability to the companies as per the revised notification provided the MOA or AOA of the companies allows them to do so.

Privileges provided to a One person company (OPC):

Certain relaxations have also been provided to the OPC under the Companies Act, 2013. As per Section 149(1)(a); only one director is required for a one person company. This type of relaxation is only provided to a one person- company. Also; the annual returns of the company is required to be signed by the Company secretary only and if no Company Secretary; then by the director alone while other companies requires them to be signed by both the directors and the company secretary.

Privileges provided to a small company:

Similar to the OPC, the small company can get their annual returns filed by the company secretary only and in case of the absence of the company secretray; by the director alone as per Section 92.

Also, as per Section 2(40); the small companies aren't required to prepare a cash flow statement.