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Above Discussion on Company.

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A company, abbreviated co., is a legal entity made up of an association of people, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.
A company or association of persons can be created at law as legal person so that the company in itself can accept limited liability for civil responsibility and taxation incurred as members perform (or fail) to discharge their duty within the publicly declared "birth certificate" or published policy.

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Above Discussion on Company.

  1. 1. Welcome To Our Presentation
  2. 2. Group name “Icon”
  3. 3. Group Member’s Name & Id NAME ID Rizwan Mahbub Khan 12132101051 Nusrat Jahan 12151101139 Masuma Akram Bristy 12151101162 Nishat Tasnim Ayon 12151101163 Sabiha Islam 11151101166
  4. 4. Topic Name: “COMPANY”
  5. 5. Defintion of Company “A company is an association of persons united for a common object”. — Justice James
  6. 6. Private Limited Company Advantages Disadvantages  Owner keeps control of the business.  Profits shared between more people.  Private limited company raise more finance that a smaller business.  A legal agreement must be set up.
  7. 7. Difference between public company & private company Basis Public Company Private Company  Meaning A public company is a company which is owned & traded publicly. A private company is a company which is owned & traded privately. Minimum members 7 2 Minimum directors 3 2 Transfer- ability of shares Freely transferable Not freely transferable
  8. 8. Definition of Promoters The persons who do the necessary preliminary work to the formation of a company are termed the promoters of the company.
  9. 9. Definition of articles of association The articles of association are the regulations for the internal arrangement & management of the company. —Charlesworth & Cain
  10. 10. Contents of articles of association Different classes of shares Calls on shares Transfer of shares Notice to members Common seal Amount of capital
  11. 11. Doctrine Ultra-vires Ultra vires is a Latin phrase meaning "beyond the powers". If an act requires legal authority and it is done with such authority, it is characterised in law as intra vires ("within the powers"). If it is done without such authority, it is ultra vires. Acts that are intra vires may equivalently be termed "valid" and those that are ultra vires "invalid".
  12. 12. Definition of memorandum of association A Memorandum of Association (MOA) is a legal document which contains the fundamental rules regarding the constitution and activities of a company.
  13. 13. Contents of memorandum of association Name clause Situation clause Object clause Liability clause Capital clause Subscription or consent clause
  14. 14. Definition of winding up of a company Winding up of a company is defined as a process by which the life of a company is brought to an end and its property administered for the benefit of its members and creditors.
  15. 15. Modes of winding up of a company  Compulsory winding up by the court  Voluntary winding up  Members voluntary winding up  Creditors voluntary winding up  Winding up subject to the supervision of the court
  16. 16. Compulsory winding up by the court Special resolution Default in holding statutory meeting Failure to commence business Reduction in members Inability to pay debts
  17. 17. Definition of prospectus According to Section 142 of the company Act 1994 — “Document containing offer of shares or debentures for sale to be deemed a prospectus.”
  18. 18. Objects of prospectus  To bring to the notice of public that a new company has been formed.  The secure that the directors of the company accept responsibility of the statement in the prospectus.  To preserve an authentic record of the terms of allotment on which the public have been invited to but its shares or debentures.
  19. 19. Contents of prospectus  The number of shares or debentures which within the two preceding year been issued for a considerations other than cash.  The amount or rate of underwriting commission.  Preliminary expenses.  The names and addresses of auditors, if any, of the company.  The time of opening of the subscription list should be given in the prospectus.
  20. 20. Definition of share A share is the interest of a shareholder in a definite portion of the capital. It expresses a proprietary relationship between the company & the shareholder.
  21. 21. Types of share Types of share Preference shares Cumulative preference shares Non-cumulative preference shares Participating preferences share Non-participating shares Convertible preference share Non-convertible preference shares Equity shares
  22. 22. Characteristics of share It is a unit of capital of the company. Each share is of a definite face value. Each share has a distinct number. Shares are transferable units.

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