The Indian Companies Act 1956

1. as regards the State of Nagaland, it applies, subject to such modifications, if any, as the Central Govemment, by notification in the Official Gazette
specify
2. as regards the State of Go a and Union Territory of Daman and Diu, such of the provisions of the Act shall not apply or shall apply with such exceptions
and modification for such period or periods with effect from the 26th January 1963 or any subsequent date, to any existing company or any company
registered under this Act on or after 26th January 1963, as may be specified by the Central Government by notification in the official Gazette (Sec 620-B),
and
3. as regards the State of Jammu and Kaslunir, such of the provisions of the Act shall not apply or shall apply with such exceptions and modifications, with


effect from the commencement of the Central Laws (Extension to Jammu and Kashmir) Act 1968 (Le. 15th August 1968) or any subsequent date, to any
existing company or any company registered under this Act after 15th August 1968, as may be specified by the Central Government by notification in the
official Gazette
Main Ob.iectives. The main objectives of new Companies Act of 1956 are as under
(i) To protect the interests of large number of shareholders as there exists separation of ownership from management in company form of organisation.
(ii) To safeguard the interests of the creditors in view of the limitedliability feature of the company.
(iii) To help the development of companies in India on healthy lines as corporate form of orgamsation constitutes a very important sector of the economy.
(iv) To help the achievement of socio-economic policy of the Government of India namely, establishing a socialistic pattern of society.
(v) To equip the Government with necessary powers to intervene directly in the affairs of the company in the public interest so that the interests of various
sections of the society e.g. consumers. labourers, shareholders, suppliers etc., may be protected from unscmpulous management.