Section 2 of the Companies Act, 2013
Section 2 of the Companies Act, 2013 is one of the most important sections because it contains definitions. It defines various key terms used throughout the Act, and is divided into numerous sub-clauses (from clause (1) to clause (94)).
Here are some of the important definitions under Section 2:
| Clause No. | Term | Definition Summary |
|---|---|---|
| (20) | Company | A company incorporated under this Act or any previous company law. |
| (42) | Foreign Company | A company incorporated outside India but having a place of business in India. |
| (68) | Share | A share in the share capital of a company, includes stock. |
| (52) | Listed Company | A company listed on a recognized stock exchange. |
| (71) | Tribunal | Refers to the National Company Law Tribunal (NCLT). |
| (85) | Small Company | A company with paid-up capital and turnover below prescribed limits. |
| (87) | Subsidiary Company | A company in which another company controls the composition of the Board or owns more than half of the share capital. |
| (91) | Turnover | Gross revenue from the sale of products or services. |
These definitions are crucial as they apply throughout the Act and influence how various provisions are interpreted and enforced.
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