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Private SectorEnterprisesPublic SectorEnterprises
Joint SectorEnterprises
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JOINT SECTOR ENTERPRISE
According to the guidelines laid down by the government
of India, the capital of a joint sector undertaking is tobe
shared as follows: government 26%, Privatebusinessmen 25% and the
investing public 49%. Nosingle private party can hold more than 25%
of the paidup capital without the permission of the
CentralGovernment
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PRIVATE SECTOR ENTERPRISE
NON COPORATECORPORATE
Sole
Proprietorship
Joint Hindu
Family Business Partnership Joint StockCompany
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PARTNERSHIP is is an agreement between persons who haveagreed to
share profits of a business carried on by all or any of
them acting for all.
FEATURES OF PARTNERSHIP
Agreement
Mutual Trust
Agency
Sharing of Profits from business
Unlimited liabilities
TYPES OF PARTNERS
Active Dormant
Secret
Nominal
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DISSOLUTION OF PARTNERSHIP
By Agreement : with the consent of all the partners.
Compulsory: Unlawful business, Bankruptcy
Contingent: Expiry of term, Completion of venture, Death
ofPartner, Insolvency of any partner
Court: Unsound mind, Permanent incapacitated, Guilty
ofMisconduct, guilty of Breach of Contract, Transfer of
interest,
Business Losses, Just & Equitable.
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S.N. Basis of distinction Partnership Co-ownership
1. Mode of creation By agreement Both by an agreement aswell as
by operation of
law.2. Object Involves community ofinterest, to earn
anddistribute profits from abusiness
May not be operated forprofits.
3. Transfer of interest No transfer of sharewithout the consent
ofother partners.
Can transfer his interestand break co-ownership.
4. Mutual agency Principal as well as agent,implied authority to
act onbehalf of others.
No mutual agency.
Difference between partnership and Co-ownership
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PUBLIC SECTOR ENTERPRISE
1. Departmental Undertakings: Like Post and Telegrams,Railways,
Broad casting services, Defence
Establishments, Automic power projects.
2. Public Corporations: like RBI, LIC, IDBI, etc.
3. Government Company
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JOINT STOCK COMPANY
Joint stock company is a voluntary association of individuals
for
profit, having a capital divided into transferable shares,
theownership of which is the condition of membership
CHARACTERSTICS
Voluntary AssociationIndependent legal EntityPerpetual
ExistenceCommon SealLimited LiabilityTransferability of Shares
A Joint Stock Company can be a Public Limited Company or a
privatelimited Company
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DIFFERENCE BETWEEN A PUBLIC LIMITEDCOMPANY AND
A PRIVATE LIMITEDCOMPANY
BASIS PRIVATE LTD. CO. PUBLIC LTD. CO.
Maximum no. of
members
50 Unlimited
Minimum no. of
members
2 7
Commence
business
After certificate of
incorporation
After certificate of
commencement of business
Invitation to
public
Cannot make an invitation to
public to subscribe to its sharecapital
Invitation to public to
subscribe to its share capitalis mandatory
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FORMATION OF A JOINT STOCK COMPANY
PROMOTION INCORPORATION COMMENCEMENT
PROMOTIONPromoter is a person who conceives the idea of starting
a business, plans
the formation of a company and actually brings it into
existence.
INCORPORATIONIt is the incorporation which brings a company into
existence as a
separate corporate entity. The promoter has to take the
followingpreliminary steps in this connection : Ascertainment of
availability of the proposed name of the company Application for
certificate of incorporation SEBIs Approval to the Draft
Prospectus
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MEANS OF FINANCE for a Joint Stock Company are:
Shares
Debentures
Short Term/ Long term loans
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Preference Shares Equity Shares
Cumulative Preference Shares
Non-cumulative Preference Shares
Participating Preference shares
Non-Participating Preference Shares
Redeemable Preference Shares
Non-redeemable Preference Shares
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Security RedemptionTransfera-
bilityConversion
Mortage
Unsecured
Redeemable
Irredeemable
Bearer
Registered
Convertible
Non-
convertible
