COMPANIES ACT- extent of application

Co. incorporated under this act/previous co. law

Insurance co (extent provision not inconsistent with insurance act and
insurance regulatory and dvp act)
Banking co (subject to banking regulation act)
Co. engaged in generation/supply of electricity (electricity act)
Other co. governed by any special act (special act)
Any body corporate incorporated by any act as CG by notification
specify for application (subject to exceptions/modifications/adaptations
specified in notification)
COMPANY- Definition
Company Act- means a co. incorporated under co act 2013 or under
any previous co. law
FEATURES of co./ ADVANTAGES
1. Independent corporate existence/ separate legal entity
Partnership-no existence apart frm its members, but co- in law is a
person
Distinct legal persona existing independent of its members.
By incorporation under this act- co. is vested with corporate personality
which is distinct frm its members who compose it- bcums body
corporate capable of immediately functioning as incorporated indiv.
Bcums institutionalized
Words of Palmer- by incorporation- owner cease to trade in own name,
liab are co. liab- co is body corporate distinct frm its members apart
frm exceptional cases
Salomon v Salomon & co. ltd
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Limited liab.
Perpetual succession
Separate property
Transferable shares
Capacity to sue/ be sued
Professional management
Finances

DISADVANTAGES
1. Formality and expense
2. Co. is not a citizen
3. Lifting the corporate veil