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What is a company
A company is an artificial person created by law. A company means a group of persons associated together for the attainment of a common end, social or economic.
Definition of a company
According to Sec (1), A company formed and registered under the act. According to Sec (3) of the act, on incorporation a company becomes a body corporate or a corporation with a perpetual succession and a common seal. According to N.D.Kapoor, IT is a voluntary association of persons formed for some common purpose, with capital divisible into parts, known as shares, and with a limited liability. It is a creation of the law and is sometimes known as an artificial person with a perpetual succession and a common seal. IT exists only in the eyes of the law, I.e., it is regarded by the law as person, just as a human being. But it has no physical existence.
CHARACTERSTICS OF A COMPNAY
Separate legal entity Limited liability Perpetual succession Common seal Transferability of shares Separate property Capacity to sue
Classification of Companies
Companies
Cos. With limited liability Ltd. Ltd. Registered companies By By shares guarantee Statutory companies Unlimited liability
Private company
Public company
Subsidiary company
Nongovernment
Registered Companies: These are the companies which are formed and registered under the companies Act, 1956 or were registered under any of the earlier companies act.
Public company
A public company means a company which
Has a minimum paid up capital of Rs.5 lakh or such high paidup capital, as may be prescribed
Subsidiary company
A company is known as a subsidiary of another company when control is exercised by the latter over the former called a subsidiary company.
Company controlling composition of Board of Directors Holding of majority of shares Subsidiary of another subsidiary
Partly by the central government and partly by one or more state governments.
E.g.: State Trading Corporation of India Limited Minerals and Metals Trading Corporation of India limited
Non-government company
Foreign companies