COMPANY LAW

By Mayur Pradhan MMS-1A Roll no : 38

What is a Company?
A Company is a form of business organization. It is a collection of individuals and physical assets with a common focus and an aim of gaining profits. This collection exists in Law and therefore a company is considered a "Legal Person"

Characteristics of Company
Separate Legal Entity

Limited Liability Perpetual Succession Separate Property

Transferability of Shares
Common Seal Capacity to sue and being sued Separate Management

Company and Partnership

o Regulating act : company- it is under companies act 1956 partnership- it comes under Indian partnership act 1932

o Mode of creation : Company- registration is the first step Partnership- registration is not compulsory

o Liability of members: Company-here the liability of the members is limited to pay back companys loans Partnership-here the liability of the partners is not limited

o Management: Company the affairs of the company are managed by its directors etc Partnership- every partner is entitled to take the decision

o Powers: Company-a companys powers are limited to those allowed by the objects clause in its memorandum of association Partnership- a partnership firm can do anything which the partners agree to do and there is no limit to its activities o Number of members: Company-min 2 for private and min 7 for public max50 private and no limit for public Partnership- min 2 and max10 for banking and max 20 for other business

Types of Company
Classification on the basis of incorporation:a) statutory companies ( by RBI) b) registered companies Classification on the basis of liability a) companies with limited liability -by shares - by guarantee b)Companies limited with unlimited liability

 Classification on the basis of number of members

a) private company b) public company Classification on the basis of control a) holding company b) subsidiary company Classification on the basis of ownership a)government company b) non-government company