The document summarizes key aspects of the Companies Act of 1956 in India. It discusses that the Act was enacted by the Indian Parliament in 1956 and regulates how companies must maintain their books of accounts. It establishes rules around the formation, management, meetings and winding up of companies. The Act also requires all companies operating in India to register. It classifies companies based on aspects like incorporation, liability, ownership and control.

1. Presented by:
Rakesh Roshan
Roll :20069

2. COMPANIES ACT 1956
It was enacted by the Parliament of India on
January 18, 1956 and started on April 1, 1956
The Companies Act, 1956 is an Act in which rules
and regulations for maintaining the books of
accounts of a company are written. No company in
India can violate the regulations of this Act.
It contains special laws which a company has to
follow while maintaining its books of accounts.
Registration of all companies in India are
undertaken by this Act. If any company does not
follow these rules and regulations, it is prohibited
to perform by law of India

3. CONTENTS :
 Nature and kinds of compaines
 Formation of a company
 Company management
 Company meetings
 Winding up of a company

4. COMPANY
A company is a form of
business organization. of
A company is a form
business organization.
It is a collection of individuals
and a collection of individuals
It is physical assets with a
common aim assets with a
and physical of gaining
common aim of gaining
profits.
profits.
This collection exists in Law
and therefore a company Law
This collection exists in is
and therefore a company is
considered a "Legal Person".
considered a "Legal Person".
A company is a form of
business organization’ of
A company is a form
business organization’

5. CLASSIFICATION OF
COMPANY
 Classification on the basis of incorporation
 Classification on the basis of liability
 Classification on the basis of No of
member
 Classification on the basis of control
 Classification on the basis of ownership

6. ON THE BASIS OF INCORPORATION
Statutory company
Registered company

7. STATUTORY COMPANIES
 Those companies which are created by a
special act of the legislature.(Act 1956).
 Ex :-Reserve bank of India ,state bank of
India, life insurance corporation,industerial
finance corporation.
 It is also concerned with public utilities.
 Ex :-railway,tramways, gas ,electricity
company.

8. REGISTERED COMPANIES
 Those companies which are formed and
registered under the company act 1956.
 This company registered under any of the
earlier companies Act .

9. COMPANIES WITH LIMITED LIABLITY
1.COMPANIES LIMITED BY SHARE :-
Company in which the liability of each shareholder is limited to
the amount individually invested.
Company limited by share are private company or public
company.
2.COMPANIES LIMITED BY GUARANTEE:-
 Where the liability of the member of a company is limited to
the fixed amount in which the member undertake to
contribute to the assets of the company.
 Company not formed for the purpose of profit but for the
promotion of art, science,culture,sport,commerce………….

10. UNLIMITED COMPANIES
 A company without a share capital or
limited liablity.
 Every member is liable for the debt of the
company.
 It may or may not have a share capital. if it
has share capital it will private company or
public company.

11. ON THE BASIS OF NO OF MEMBER
 PRIVATE COMPANY:-
 A company which has minimum paid-up capital of
100,000.
 Its dot invites the general public to subscribe for the
share ,debenture of the company.
 It hasn't right to transfer share and debenture.
 Private company become public company.
conversion by default
conversion by choice

12. PUBLIC COMPANY
 A company which has minimum paid-up
capital of 5 lakh.
 Minimum no of person 7.

13. WHEN DOES A PRIVATE COMPANY BECOMES A
PUBLIC COMPANY
 Conversion by default : A private company
makes a default in complying with the essential
statutory requirements as laid down in Section
3(1')(iii)of the Actiie., if-its membership exceeds
50 and it does not restrict transfer of share by its
members and gives invitation to public to buy its
shares or to make deposits, the company cease
to be entilted to be the privilege and exemptions
conferred on private companies by or under this
Act, under this circumstances , the act shall
apply to the company as if it were a public not a
private company.

14. CONVERSION OF A PRIVATE COMPANY INTO
A PUBLIC COMPANY BY CHOICE:
a) if a private company alter its article in such a manner that the no
longer include the provision due to which it is catogorised as a
private company, the company shall cease to be a private company.
It shall then, within a period of 30 days after the said date , file with
the registrar either a prospectous or a statement in lieu of
prospectous.
b) A copy of special resolution in form 23 must be filled with R.O.C
within 30 days thereof.
c) If the members are less than 7 steps must be taken to increase
this no. to Atleast seven
d) If the No. of he director are less than 3 steps must be taken to
increase this no. to Atleast 3
e) If the paid up share capital is less than 500000, steps must be
taken to increase.
f) The name of the company must be changed by deleting the word
“Pvt

15. CONVERSION OF A PUBLIC COMPANY INTO A PRIVATE
COMPANY (SEC 31(1)(2A)
1) A general meeting must be held a special resolution must be passed for
altering the Articles of association that means restrictions, limitations and
prohibitions which are necessary according to sec 3(1)(iii) are included.
2) An application must be made to the central government in the form 1B
for necessary approval.
3) A copy of a special resolution in form 23 must be filed with the registrar
within 30 days thereof along with altered articles.
4) A copy of order of central government must be filed with R.O.C within
one month of receipt.
5) Where the no. members are more than 50 steps must be taken to reduce
to 50 or less.
6) The name of the company must be changed by adding the word “Pvt”
registrar under the new name of the company.
7) A fresh certificate of incorporation must be obtained from the registrar
under the new name of the company.

16. ON THE BASIS OF CONTROL
1.HOLDING COMPANY:-
A holding company is a company or firm that owns other
companies' outstanding stock. It usually refers to a company
which does not produce goods or services itself; rather, its
only purpose is owning shares of other companiesa
company which has which has control over that other
company.
2.SUBSIDIARY COMPANY:-
 A company is known as a subsidiary of another
company when control is exercised by the latter (called
holding to company) over the former called a subsidiary
company.
 A company is deemed to be a subsidiary of another
company in the following 3 cases:

17. (1)COMPANY CONTROLLING COMPOSITION OF
BOARD OF DIRECTORS
Where a company (Company A) controls the
composition of board of directors of another
company (Company B), the latter (Company
B) becomes the subsidiary of the former
(Company A).

18. (2)HOLDING OF MAJORITY OF SHARES:
 Where a company (Company A) holds more
than half in nominal value of equity share
capital of another company (Company B) the
latter (Company B) becomes the subsidiary
of the former (Company A).

19. (3)SUBSIDIARY OF ANOTHER SUBSIDIARY:
 Where a company (Company B) is subsidiary
of anther company (say Company A1) which
is itself subsidiary of the controlling company
(Company A), the former (Company B)
becomes the subsidiary of the controlling
company (Company A).

20. (V)ON THE BASIS OF OWNERSHIP
 Government company, or
 Non-government company
 Government Company:
 A Government company means any company in which
not less than 51 per cent of the paid-up share capital is
held by.
The central government, or
Any state government or governments, or
Partly by the central Government and partly by one or
more state Governments.

21. Thank you