PRESENTED TO : MRS .

ANITA TEWARI
PRESENTED BY : AMIT SINGH BISHT
MBA Two Yr Third Sem.
Subject- CLE
 Definition of company
 Nature of a company
 Feature of company
 Structure of company
 Section 3 (1) (i) of the Act defines : “A company means a
company formed and registered under this Act or an
existing company .”
That is , a company is an association of persons united
for a common object .
It is a form of business organization where the funds of a
large number of investors are managed by a few persons
for the purpose of earning profits which are shared by all
the investors .
 A company has a dual nature, as an
association of its members but also as a
person separate from its members. As soon as
necessary formalities of incorporation are
satisfied, a new entity comes into existence
which is separate and distinct from its
directors and shareholders .
 List of Feature of Company as per Indian Companies
Act 1956 .
1. Incorporated Association .
2. Separate Legal Entity .
3. Limited Liability .
4. Transferability of Shares .
5. Perpetual Existence .
6. Common Seal .
 It mainly consists of three levels of management.

They are as follows:

1 ) TOP LEVEL MANAGEMENT

2) MlDDLE LEVEL MANAGEMENT

3) LOWER LEVEL MANAGEMENT

 TOP
LEAVEL
MANAGEMENT

MlDDLE
LEVEL
MANAGEMENT
LOWER
LEVEL MANAGEMENT
 Top-level management consists of boards of
directors, presidents, vice-presidents, CEOs,
general managers and senior managers, etc.

 They develop goals, strategic plans, and company

policies and make decisions about the direction of
the business.

 Top managers need to have more conceptual skill

than technical skill. They understand how
competition, world economies, politics, and social
trends affect organizational effectiveness .
 Middle management is at the centre of a hierarchical
organization, subordinate to the senior management
but above the lowest levels of operational staff .

 They are accountable to top management for their

department's function. They provide guidance to
lower-level managers and Inspire them to perform
better .

 Middle-management functions generally revolve

around enabling teams of workers to perform
effectively and efficiently and reporting these
performance indicators to upper management .
 Low-level managers focus on controlling and
directing. They serve as role models for the
employees they supervise .

 Assigning employees tasks .

 Guiding and supervising employees on day-to-day

activities .

 Ensuring the quality and quantity of production .