Post on 21-Jan-2015
description
ANJU ARUJAS3 MBA
CET14/09 /2012
COMPANIES
COMPANY
Association of individuals formed for some common purpose.
Voluntary association to carry on some business for Profit Promote art,science,education Some charitable purpose
DEFINITION
Companies Act 1956, Section 3(1)(i)
“A company formed and registered under this act, or an existing act”.
“ A Voluntary incorporated organization which is an artificial person, created by law with limited liability having a common seal and perpetual succession”.
Salient Features
Voluntary association – activities of this association are governed by the law and are limited by its own character –The Memorandum Of Association.
Incorporated association
Independent legal entity
Separate property.
Perpetual succession
Common seal
Share capital
Limited liability
Transferability of shares
Ownership and management
Classes Of Companies
Chartered companyStatutory companies
incorporationRegistered companies
Companies limited by sharesCompanies limited by guarantee
liabilityCompanies with unlimited liabilities of
members
Classes of companies
Private number of members
Public
Private company Public company
Min members-2,max -50 Min members-7,max-no limit
Min paid up capital-1 lkh Min paid up capital-5 lkhs
Public cant subscribe shares or debentures
They can
Can immediately proceed to make allotment of shares after incorporation
shall have to wait
Need not wait for min subscription Shall have to wait
After incorporation, it can immediately commence business
Have to wait till certificate for commencement of business is received.
May not hold statutory meeting Has to hold the meeting
There is restriction on transfer of shares
Freely transferred
MOA be signed by 2 members MOA should be signed by at least 7 members.
Private company to public company
Conversion by default
Conversion by choice
THANKYOU