CHANDIGARH UNIVERSITY

UNIVERSITY INSTITUTE OF LEGAL STUDIES

LAW( Legal studies)
Corporate Law I
LLT 316
SUMIT SHARMA

CLASSIFICATION OF COMPANY DISCOVER . LEARN . EMPOWER

 Course Outcome
CO-1 The students will be able to define the word company and identify various kinds of
companies
CO-2 The students will be able to classify,  compare and relate securities of the company like
Shares, debentures etc. 

CO-3 The students will be able to sketch the documents required for registration of a
company and its prospectus.

CO-4 The students will be able to connect and relate different doctrines of the subject and
illustrate the same.

CO-5 The students will be able to judge ,criticize  and defend the working of any company
according to company laws

CO-6 The students will be able to design the company.

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 GENERAL DEFINITION OF A COMPANY

GENERAL DEFINITION OF A COMPANY

“COMPANY MEANS AN INCORPORATED ASSOCIATION OF
PERSONS

NATURAL PERSON ARTIFICIAL PERSON

i.e. SURESH/MOHAN i.e. COMPANY/FIRM ETC..

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 LEGAL DEFINITION OF COMPANY
• Definition under Section 2 (20)Company act 2013
COMPANY

Association of person

Formed or Registered under

PREVIOUS COMPAIES ACT,1956 etc.

PRESENT ACT (COMPANY ACT 2013)

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 OTHER DEFINTION OF COMPANY
According to Justice Lindley-:
COMPANY

“An association of persons who put their money into common

stock, to carry on business activity with the motive to earn
profit and to share that profit among the members of the
association,”

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 ADVANTAGES OF INCORPORATION

Features of a Company
SEPRATE LEAGAL ENTITY
COMMON SEAL
PERPETUAL SUCCESSION
LIMITED LIABILITY
TRANSFERABILITY OF SHARES
SEPRATE PROPERTY
CAPACITY TO SUE AND TO BE SUED

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Difference between company and partnership
company & Partnership distinguished On the basis of ………
 Registration
 Separate legal entity
 Right on property
 Liability
 Transferability of shares
 Perpetual succession

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KINDS OF COMPANY

 Kinds of companies may be listed as under:

Registered Company
Statutory Company
 Chartered Company
Companies ltd by shares
Public Companies ltd by guarantee &

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 Formation of a Company
NOTE-: WE CAN FORM COMPANY FOR ANY LAWFUL OBJECT
SECTION 3

PUBLIC COMPNY PRIVATE COMPANY ONE PERSON COMPANY

REQUIREMENT OF PERSONS
IN PUBLIC COMPANY 7 MIN.PERSONS ARE REQUIRED
IN PRIVATE COMPANY 2 MIN. MEMEBERS ARE REQUIRED
IN ONE PERSON COMPANYV1 MIN. PERSON IS REQUIRED
REQUIREMENTS OF DOCUMENTS
MOA ( SECTION 4)
AOA (SECTION 5)
OTHER 9
KINDS OF COMPANIES

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Definitions under company act,2013
• Section2(6) ―associate company‖, in relation to another company,
means a company in which that other company has a significant
influence, but which is not a subsidiary company of the company
having such influence and includes a joint venture company.
Explanation.—For the purposes of this clause, ―significant influence‖
means control of at least twenty per cent. of total share capital, or of
business decisions under an agreement;

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Definition
• Section2(21) ―company limited by guarantee‖ means a company
having the liability of its members limited by the memorandum to
such amount as the members may respectively undertake to
contribute to the assets of the company in the event of its being
wound up;
• Section2(22) ―company limited by shares‖
• means a company having the liability of its members limited by the
memorandum to the amount, if any, unpaid on the shares
respectively held by them;

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Definition
• Section2(42) ―foreign company‖ means any company or body
corporate incorporated outside India which—
• (a) has a place of business in India whether by itself or through an
agent, physically or through electronic mode; and
• (b) conducts any business activity in India in any other manner.
• Section2(46) ―holding company‖, in relation to one or more other
companies, means a company of which such companies are
subsidiary companies;

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Definition
• Section2(45) ―Government company‖
• any company in which not less than fifty-one per cent. of the paid-up
share capital is held by the Central Government, or by any State
Government or Governments, or partly by the Central Government
and partly by one or more State Governments, and includes a
company which is a subsidiary company of such a Government
company;

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Definition
• Section2(52) ―listed company‖ means a company which has any of
its securities listed on any recognised stock exchange;
• Section2(62) ―One Person Company‖ means a company which has
only one person as a member
• Section2(71) ―public company‖ means a company which— (a) is not
a private company; (b) has a minimum paid-up share capital 1 *** as
may be prescribed: Provided that a company which is a subsidiary of a
company, not being a private company, shall be deemed to be public
company for the purposes of this Act even where such subsidiary
company continues to be a private company in its articles ;

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 SUMMARY
Company is an association of person, having perpetual succession ,
with separate property, and transferable share
after incorporation of the company company become a legal person
in the eyes of law.
After registration of the company get some advantages like can sue,
be sued ,legal person, separate property etc.
Generally we can form a company for any lawful object.
According to company act we can form public company, private
company and one person company.

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 REFERENCE
Text Books

Company law with supplement by Avtar Singh

Company Law Ready Reckoner by R Suryanarayayan
Corporate law containing Company’s Act, 2013 by Ravi Puliani
Company law by avtar singh
Company law bare act 2013

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THANK YOU

For queries
Email: sumitactor28@gmail.com