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Indian Law
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04/10/231
INDIAN COMPANIES ACT, 1956
Vishal Jalalporwala &
Ankit Jain
04/10/232
THE COMPANIES ACT 1956
Definition
Various types of companies
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Meaning of the term “Company”
Company : [section 3(1)]
Formed & registered under the companies Act
Any existing company established under any previous Act.
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COMPANY
Company is an artificial person
It is considered as a separately legal entity for the purpose of law.
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Various Types Of Companies
There are many types of company
depending upon the Difference in the
objects of it.
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Various Types Of Companies
Types of Company
Incorporation Liability Control
CharteredCompany
RegisteredCompany
StatutoryCompany
Private
Limited by shares Limited By Guarantee Unlimited Company
Public Private
Govt. orNon. Govt.
Holding &Subsidiary
Foreign orDomestic
Public
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On the basis of Incorporation
Chartered Company
A Company incorporated under a special charter granted by the
Queen of England is called “Chartered Company”.
The Company is regulated by its Charter and Companies Act
does not apply to this kind of company.
The Charter also prescribe the nature of Business and the power
of the Company.
Examples : East India Company and Bank Of England
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On the basis of Incorporation
Statutory Company
A Statutory Company is one which is created by a Special Act of
Parliament or a state legislature. For achieving the purpose of public utility. The nature and the power of such companies are laid down in the
special Act under which they are created. Memorandum of Association is not required. Not required to Use “limited” after its name.
Examples : RBI, UTI, LIC, State Bank of India.
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On the basis of Incorporation
Registered Company
A Registered Company is one which is registered in accordance
with the provisions of the Companies Act, 1956 and includes the
existing Companies formed under any other law.
Comes into existence by receiving the certificate of Incorporation.
Governed by the Companies Act ,1956.
Registered Company may be PRIVATE OR PUBLIC COMPANY.
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On the basis of Incorporation
Private Company
Section 3(1)(iii): A Private Company means a company which has a minimum
paid up capital of Rs. 1,00,000/- or such higher paid up capital as may be prescribed by its articles–
Restrict the right to transfer its shares, if any;
Limits the number of the member to fifty,
Prohibits any invitation to the public to subscribe for any shares in or debenture of the company.
Prohibits any invitation or acceptance of deposits from persons other than its members, directors or its relatives.
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Section 3(1)(iv): Public company means a company which is Either –
not a private and has a minimum paid-up capital of
Rs. 5,00,000 or such higher paid-up capital as may
be prescribed;
Is a private company which is a subsidiary of
public company.
On the basis of Incorporation
Public Company
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There is no restriction on the number of members. However, the maximum number of members depends upon the number of shares allotted.
Public company may bea) A company limited by sharesb) A company limited by guaranteec) An unlimited company.
In case a public company is a limited company, then it must add the word “ Limited ” at the end of its name.
It must have minimum at least 7 members. It must have at least 3 directors.
On the basis of Incorporation
Public Company
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On the basis of incorporation
Company not for Profit
According to Section 25, the Central Government may by license grant that an association may be registered as a company with limited liability, without using the words ‘limited’ or ‘pvt ltd’ as a part of its name.
An association must satisfy the following condition;a) The association about to be formed as a limited company aims at
the promotion of commerce, art, science, religion, charity, or any other useful objective ;
b) It intends to apply its profits, if any, for promoting its objects; andc) It prohibits the payment of dividend to its members.
Central Govt. has a power to revoke the license of such company.
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On the basis of Liability
Limited by shares [Section 12(2)(a)]
A company limited by shares is a company in which the liability of its members is limited by its Memorandum to the amount unpaid on the shares respectively held by them.
It may either public or private Company. If member of the company pays a full amount on shares then
his liability would be nil.
Features:The liability of its members is limited up to the amount remaining unpaid on the shares held by them.Such liability can be enforced either during the lifetime or during the winding up of the company.
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On the basis of Liability
Limited by Guarantee [Section 12(2)(b)]
A company in which the liability of its members is limited by its Memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up.
For the purpose of Commerce, science, art, religion, charity or any other useful objects.
Features:The liability of its members is limited up to the amount Guaranteed by them.Such liability can be enforced only after the commencement of winding up of the company and not during the lifetime of it.
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On the basis of Liability
Unlimited Company [Section 12(2)(c)]
A company in which the liability of its members is limited by its Memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up.
For the purpose of Commerce, science, art, religion, charity or any other useful objects.
Features:The liability of its members is limited up to the amount Guaranteed by them.Such liability can be enforced only after the commencement of winding up of the company and not during the lifetime of it.
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On the basis of Control
Government Company [Section 617]
A Government company means “any company in which at least 51% of the paid up share capital is held by the Central Government or by any state Government.
Even a subsidiary company of Government is regarded as a government Company.
Example: Indian telephone Industries,
Hindustan Aeronautics Ltd.
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On the basis of Control
Non - Government Company
A company which may not be termed as
a a government company as defined in
section 617 is regarded as a non –
Government company.
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On the basis of Control
Foreign Company
A company which is incorporated outside India under the law of that country is known as a Foreign Company.
After the establishment of Business in India, the following documents must be filed with the Registrar of companies within 30 days for the date of establishment.
i. A certified copy of the charter or statutes under which the company is incorporated
ii. The full address of the registered office of the company.
iii. A list if directors & secretary of the company.
iv. The full address of the company’s principal place of business in India.
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On the basis of Control
Domestic Company
A company which cannot be termed as
foreign company under the Provisions of
the Companies Act should be regarded
as a Domestic company.
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On the basis of Control
Holding & subsidiary Company
If one company controls over the another company, the controlling company may be termed as a ‘Holding Company’ and company so controlled may be termed as ‘Subsidiary Company’.
Section 4(4) of the act defines a holding Company as “ a Company shall be deemed to be the holding company of another, if that other is its subsidiary.
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On the basis of Control
Public Financial Institute
The Central Government by notification in the official Gazette is empowered to specify any other institution as public Financial Institutions if:
a) It is constituted under any Central Act or is held or controlled by the Central Government.
b) Not less than 51 percent of its paid up Capital is controlled or held by the Central Government.
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On the basis of Control
Public Financial Institute
Under Section 4A of the Act, following institution are deemed to be Public Financial Institutions:
1. The Industrial Credit and Investment Corporation of India Ltd.
2. The Industrial Financial Corporation of India.
3. The Industrial Development Bank of India.
4. The Life Insurance Corporation of India.
5. The Unit Trust of India.
6. The Infrastructure Development Finance Company Limited.
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On the basis of Control
Multi national Companies
A Multinational Companies is huge Organisation which –
a) Operates in more than one country.
b) Carries out production, marketing and research
activities on international scale in those countries
c) Attempts to maximize profit world over.
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THANK YOU
• Presented By : Vishal J. Jalalporwala
Registration No :- WRO 0267772
Ankit jainRegistration No :- WRO 0260333
