Mar 30, 2019 the companies act, 20 provides for the kinds of companies that can be promoted and registered under the act. The companies act 1956, defines company as a company formed and registered under the companies act. Literary meaning of the word company is an association of persons formed for common object. This article is based on uk law as at 1st february 2010, unless otherwise stated. Investment company part 24 an investment company is a public company.
Types of company under the companies act 20 setindiabiz. The type of business is very important to the company, so we should choose the right type in accordance with their purposes. General meetings kinds of company meetings duties of. Apr 03, 2016 types of company under the companies act 20. When the members of a company gather at a certain time and place to discuss business affairs it is called company meeting. A company comes into existence only after registration under the companies act. The meetings of a company can be broadly classified into four kinds. There are various laws ranging from criminal, family, relations, income tax, ipr, business and many more. These types of companies have a share capital and the.
The property of the company is not the property of the shareholders. Before a plc can conduct any business, it must make a return to companies house stating that it has raised its minimum share capital and received from. Corporate law often describes the law relating to matters which derive directly from the. Hi, classification of companies under new companies act, 20 is here. Different company types under the companies act 2014. According to the section 85 of the companies act, 1956, the share capital of a company consists of two kinds of shares. Private limited company is a types of company which is formed with minimum two shareholders and two directors, the minimum requirement with respect to authorized or paid up capital of rs.
Features of a company, kinds of company and share capital. A company is a voluntary association of persons recognised by law, having a distinctive. Meetings of the board of directors and their committees. Let us familiarize ourselves with the features of a company, kinds of company, and share capital of company. Administrative law includes public, government, and regulatory law. Jun 24, 2016 hi, classification of companies under new companies act, 20 is here. Corporate law also known as business law or enterprise law or sometimes company law is the body of law governing the rights, relations, and conduct of persons, companies, organizations and businesses. Another crucial condition of a private limited company is that it.
But the one thing that a private company cannot do as a matter of law is offer its shares to the public. Kinds of company anchal singla company law youtube. A company is an association of many persons on a voluntary basis. Nov 26, 2015 directors on incorporation,a company becomes a person in the eyes of law. Salomans case established beyond doubt that in law a registered company is an entity distinct from its members, even if the person hold all the shares in the company. It can be a limited or an unlimited company, private or a public company, company limited by guarantee or a company having a share capital, or a community interest company.
The principal characteristics of an incorporated company can be summarised as follows. Meaning, characteristics and kinds business management. Associations not for profit having a license under section 8 of the companies act, 20 or under any previous company law. Any private company that wants to issue shares to the public must first become a plc or public limited company. General meetings kinds of company meetings duties of the. Even if the member of shareholders is reduced to one the shareholder and the company are two distinct persons. There are various types of company that can be formed in different jurisdictions, but the most common forms of company are. Types of companies classification and different kind of companies. All these laws and legal services have varied distinct rules and conditions to apply with. Kinds of companies under companies act 20 1 one person company section 262 of 20 act. Law is stated with rules and regulations in order to carry different activities of the economy in an esteem manner. It may be noted that a registered company comes into existence when it is registered under law.
An unregistered company is a company which was formed prior to modern company law, for example companies that were formed under royal charter or specific legislation in earlier centuries. The companies act, 20 provides for the kinds of companies that can be promoted and registered under the act. All the affairs of the company are practically carried out by the board of directors. Oct 14, 2019 according to section 251 of the act, where a company allots or agrees to allot any securities of the company with a view to all or any of those securities being offered for sale to the public. A company is a corporation an artificial person created by law. In the commercial world today, company law has more relevance than any other law. In english law and in legal jurisdictions based upon it, a company is a body corporate or corporation company registered under the. It confers full limited liability on its members, must have at least one director and one shareholder. There is no difference in principle between a company consisting of only two. Businesses usually raise capital by issuing shares in the company or by borrowing from lenders. Mar 11, 2015 share capital is the amount contributed by the share holders to the companys resources.
It is a legal entity incorporated under the companies act, 20 or any other previous acts, prevalent in the country. Companies and partnerships compared a a company can be created only by certain prescribed methods most. A company thus has legal rights and obligations in the same way that a natural person does. To the students of law it is an easily understandable subject. According sec 31i of companies act company means a company formed and registered under the act, or an existing company. A company may be incorporated by means of a special act of the parliament or any state legislature. According sec 31i of companies act company means a company formed and registered under the. Section 3 1 i of the companies act, 1956 defines a company as a. Such companies are called statutory companies, instances. Share capital, its kinds under company law the law study.
Company means a company incorporated under this act or any previous company law. The three basic types of companies which may be registered under the act are. In the context of company law, expression share means it typical movable property which for all practical purposes can be sold, mortgaged and bequeathed. Company meetings essentials kinds of company meetings.
Directors on incorporation,a company becomes a person in the eyes of law. Investment company part 24 an investment company is a public company limited by shares, with the sole object of. The word meeting is not defined anywhere in the companies act. A company is managed by the board of directors or whole time directors or managing directors or manager who are selected in the manner provided by the a shareholder, as svcfa. A company is a legal or juristic person, apart from its members, capable of rights and. It s voluntary incorporated association which is an artificial person created by law with limited liability having common seal and perpetual succession. The aim of this report is to get a good understanding of the type of business organizations which are suitable for the purposes of three cases and the 1974 consumer credit act. The history of indian company law began with the joint stock companies act of 1850. The degree of ownership of the company of a shareholder is directly proportionate to the number of shares the individual buys. Debentures in company law may refer to secured debentures, unsecured debentures, registered debentures, bearer debentures, redeemable debentures, irredeemable debentures, and convertible debentures. Most often, business entities are formed to sell a product or a service.
They are separate from sole proprietorships because opcs are legal entities. Section 3 1 of the companies act 20 states that a company may be formed for any lawful purpose by an unlimited company. The board of directors of a company carries out these affairs within the limitations of their powers. A company is a body corporate or an incorporated business organization registered under the companies act. Meaning and kinds of shares company law srd law notes. Tbe deah or insolvency of a member dots not affect its existence. According to section 251 of the act, where a company allots or agrees to allot any securities of the company with a view to all or any of those securities being offered for sale to the public. A company is considered as a legal entity separate from its members in the eyes of law. Kinds of shares according to section 86 of the companies act 1956 there are two kinds of shares which are as follows. In case the company law board calls or directs the calling of a meeting of the company, when default is made in holding an annual general meeting, the government may give directions regarding the quorum including a direction that even one member of the company present in person, or by proxy shall be deemed to constitute a meeting.
The companies act 20 has replaced companies act 1956. Aug 08, 2018 the history of indian company law began with the joint stock companies act of 1850. Types of company all you need to know law and beyond. Any document by which such offer for sale to the public is made is deemed to be a prospectus by implication of law. A company may be defined as an incorporated association which is an artificial person, having a separate legal entity, with a perpetual succession, a common seal, a common capital compromised of transferable shares and limited liability. The term refers to the legal practice of law relating to corporations, or to the theory of corporations. Increase and reduction in this share capital is possible according to regulation given under company ordinance. However, if the company fails to comply any of these restrictions, it automatically qualifies for public limited company. The various kinds of companies that can be formed under the companies act, 20 are. Short notes on various kinds of companies and types of companies that can be formed under companies act, 20 for bbabbmbms. Check that you have all the required information and register on line now. The assets and liabilities of the company are different from those of its members. As such, the private company is a very flexible format that can be adapted to fit numerous different requirements.
Share capital is the amount contributed by the share holders to the companys resources. The board of directors of a company carries out these affairs within the limitations of their powers, as invoked by the articles of association of the company. There are following types or kings of meeting in a company 1. Features of company as per indian companies act 1956, define a company or corporate body. Shares and typeskinds of shares in company law in india. The different kinds of law include criminal, contract, property, and business law. Nov 09, 20 conversion of private company to public company. The legal existence of a public limited company is separate from its members shareholders and the liability of its members is also limited. Since then a cumulative process of amendment and consolidation brought us to the most comprehensive and complicated piece of legislation, the companies act 1956.
A business entity is an entity that is formed and administered as per corporate law in order to engage in business activities, charitable work, or other activities allowable. Page msrlawbooks company law 10 company law chapter 1 company definition registration and advantages ch. A company is a voluntary association of persons recognised by law, having a distinctive name and common seal, formed to carry on business for profit, with capital divisible into transferable shares, limited. In order to achieve the objects that are stated in the memorandum of association, the company has to depend up on agency called board of directors the members of board of directors of a company are called its directors. In other words, a company is a legal entity which is formed by different individuals to generate profits. Types of companies private company limited by shares limited or ltd the standard trading company and by far the most usual type of company. A company has certain very unique features and characteristics. The registered companies are governed by the provisions of the companies law. Kinds of companies under companies act, 20 bbamantra. Ordinarily, a company may be defined as gathering, assembling or coming. Statutory meeting is the first meeting of the members of a public company. Different types of companies are companies limited by shares, companies. A company definition, features, types and companies act.
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