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Microlesson · 5-min read

Applicability of the Companies Act, 2013

# Applicability of the Companies Act, 2013

The provisions of the Act apply to six categories of entities. For specialised entities, the Act applies only to the extent it is not inconsistent with the relevant special legislation.

## The Six Categories

#EntityGoverning Special Law (where applicable)
1Companies incorporated under this Act or any previous company law
2Insurance companiesInsurance Act, 1938 / IRDA Act, 1999
3Banking companiesBanking Regulation Act, 1949
4Companies engaged in generation or supply of electricityElectricity Act, 2003
5Any company governed by a special ActThat special Act
6Body corporate incorporated by any Act, as notified by Central Government

## Key Principle: 'Inconsistency Rule'

For categories 2 to 5, the Companies Act applies subject to the special law. If the special law and the Companies Act conflict, the special law prevails.

## Examples under Category 6

  • Food Corporation of India (FCI)
  • National Highway Authority of India (NHAI)

## Memory Aid: 'CIB-ESS'

  • Companies incorporated under the Act
  • Insurance companies
  • Banking companies
  • Electricity companies
  • Special Act companies
  • Statutory bodies notified by Central Govt

Worked example

### Example 1

Q: Does the Companies Act, 2013 apply to a bank incorporated under the Banking Regulation Act, 1949?

A: Yes, the provisions of the Companies Act, 2013 apply to banking companies, but only to the extent they are NOT inconsistent with the Banking Regulation Act, 1949. Where the two laws conflict, the special law (Banking Regulation Act) prevails.

### Example 2

Q: Is the Food Corporation of India (FCI) governed by the Companies Act, 2013?

A: FCI is a body corporate incorporated by a special Act. The Companies Act, 2013 applies to it only if the Central Government has notified it under category 6 of applicability.

⚠️ Common exam mistakes

  • Forgetting that for insurance, banking, electricity companies, the Companies Act applies only where it is NOT inconsistent with the relevant special Act
  • Missing the requirement of Central Government notification for body corporates under category 6
  • Listing FCI/NHAI as ordinary companies — they are statutory body corporates notified by the Central Government
Reference: Section 1(4) — Companies Act, 2013
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