Anilgsharma Started The Discussion:
Dear All, can anybody let me know that what is the basic difference between factories act 1948 and companies act 1956. why the two different acts needed to form.
Factories act 1948 constitute to start functioning of factories.Its main objective to set up and establish industrial unit and control the factory process with sociatal benefits. Factories act established for the purpose of controlling process and establishing individual and social benefits from the factory.
Whereas Companies act 1956 constitute to form a company to run the business to attain the organisational objectives.
Factories Act 1948 is concerned with legal requirements,rules and regulations which are required to be complied with for a manufacturing unit to funtion without violating any rules and regualtions.
Companies Act 1956 is concerned with formation,day to day running,winding up,board meetings,shareholers meetings,rules and regulations which are required to complied with by a business entity called company vis-a-vis other forms of business such as proprietorship,partnership,society,trust etc
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