Companies Act 1956, Section 3(1)(i) “A company formed and registered under this act, or an existing act”. “ A Voluntary incorporated organization which is an artificial person, created by law with limited liability having a common seal and perpetual succession”.

1. COMPANIES
ANJU ARUJA
S3 MBA
CET
14/09/2012

2. COMPANY
 Association of individuals formed for some common
purpose.
 Voluntary association to carry on some business for



Profit
Promote art,science,education
Some charitable purpose

3. DEFINITION
 Companies Act 1956, Section 3(1)(i)
 “A company formed and registered under this act, or
an existing act”.
 “ A Voluntary incorporated organization which is an
artificial person, created by law with limited liability
having a common seal and perpetual succession”.

4. Salient Features
 Voluntary association – activities of this association
are governed by the law and are limited by its own
character –The Memorandum Of Association.
 Incorporated association
 Independent legal entity
 Separate property.
 Perpetual succession

5.  Common seal
 Share capital
 Limited liability
 Transferability of shares
 Ownership and management

6. Classes Of Companies
 Chartered company
 Statutory companies
incorporation
 Registered companies
 Companies limited by shares
 Companies limited by guarantee
 Companies with unlimited liabilities
liability
of members

7. Classes of companies
 Private
 Public
number of members

8. Private company
Public company
Min members-2,max -50
Min members-7,max-no limit
Min paid up capital-1 lkh
Min paid up capital-5 lkhs
Public cant subscribe shares or
debentures
They can
Can immediately proceed to make
allotment of shares after incorporation
shall have to wait
Need not wait for min subscription
Shall have to wait
After incorporation, it can immediately
commence business
Have to wait till certificate for
commencement of business is received.
May not hold statutory meeting
Has to hold the meeting
There is restriction on transfer of shares Freely transferred
MOA be signed by 2 members
MOA should be signed by at least 7
members.

9. Private company to public company
 Conversion by default
 Conversion by choice

10. THANKYOU