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Submitted In Partial Fulfillment of the requirements For the Award of Degree of Bachelor of Commerce Banking & Insurance
By JAIKISHAN GUPTA HARDIK HARIYA NIKHIL FATNANI YOGI RAGHANI AMIT RAJPAL
SMT.M.M.K. COLLEGE OF COMMERCE AND ECONOMICS BANDRA (W) MUMBAI-50 CERTIFICATE (2011 2012) This is to certify that we the students of B.com (Banking & Insurance) Semester IV (2011-12) have successfully completed the project on THE COMPANIES ACT under the guidance of Prof. FARZIN DARUWALA. Date:Place:-
DECLARATION
Date:- 15/01/2012
We, the student of B.Com (Banking & Insurance) Semester IV (2011-12) hereby declare that we have completed the project on THE COMPANIES ACT successfully.
Thank you,
Yours faithfully, JAIKISHAN GUPTA HARDIK HARIYA NIKHIL FATNANI YOGI RAGHANI AMIT RAJPAL
ACKNOWLEDGEMENT
At the beginning, we would like to thank Almighty God for his shower of blessing. The desire of completing this dissertation was given a way by my guide Prof. FARZIN DARUWALA. We are very much thankful to him for the guidance, support and for sparing his precious time from a busy and hectic schedule.
We are thankful to Dr. ASHOK VANJANI, Principal of Smt.M.M.K. College. We sincere thanks to Prof. FARZIN DARUWALA who always motivated and provided a helping hand for conceiving higher education. We would fail in my duty if I dont thank my parents who are pillars of my life. Finally, I would express my gratitude to all those persons who directly and indirectly helped me in completing dissertation. JAIKISHAN GUPTA HARDIK HARIYA NIKHIL FATNANI YOGI RAGHANI AMIT RAJPAL
DECLARATION
Date: -
I the undersigned Prof. FARZIN DARUWALA, have guided them for this project, they have completed the project THE COMPANIES ACT
successfully.
I hereby, declared that information provided in this project is true as per the best of my knowledge.
Thank you,
An Act to consolidate and amend the law relating to companies and certain other associations
Citation- Act No. 1 of 1956 Territorial Extent Enacted by- Whole of India Date enacted- 18 January, 1956 Date commenced- 1 April, 1956
Introduction
In India, the Companies Act 1956 is the most important piece of legislation that empowers the Central Government to regulate the formation, financing, functioning and winding up of companies. The Act contains the mechanism regarding organizational, financial, managerial and all the relevant aspects of a company. It empowers the Central Government to inspect the books of accounts of a company, to direct special audit, to order investigation into the affairs of a company and to launch prosecution for violation of the Act. These inspections are designed to find out whether the companies conduct their affairs in accordance with the provisions of the Act, whether any unfair practices prejudicial to the public interest are being resorted to by any company or a group of companies and to examine whether there is any mismanagement which may adversely affect any interest of the shareholders, creditors, employees and others. If an inspection discloses a prima facie case of fraud or cheating, action is initiated under provisions of the Companies Act or the same is referred to the Central Bureau of Investigation. The Companies Act is administered by the Central Government through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official, Public Trustee, Company Law Board, Director of Inspection, etc. The Registrar of Companies (ROC) controls the task of incorporation of new companies and the administration of running companies. Under the Companies Act, 1956, the term 'company' means a company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws". The basic objectives underlying the law are: A minimum standard of good behavior and business honesty in company promotion and management. Due recognition of the legitimate interest of shareholders and creditors and of the duty of managements not to prejudice to jeopardize those interests. Provision for greater and effective control over and voice in the management for shareholders. A fair and true disclosure of the affairs of companies in their annual published balance sheet and profit and loss accounts. Proper standard of accounting and auditing.
Recognition of the rights of shareholders to receive reasonable information and facilities for exercising an intelligent judgment with reference to the management. A ceiling on the share of profits payable to managements as remuneration for services rendered. A check on their transactions where there was a possibility of conflict of duty and interest. A provision for investigation into the affairs of any company managed in a manner oppressive to minority of the shareholders or prejudicial to the interest of the company as a whole. Enforcement of the performance of their duties by those engaged in the management of public companies or of private companies which are subsidiaries of public companies by providing sanctions in the case of breach and subjecting the latter also to the more restrictive provisions of law applicable to public companies The Companies Act, 1956 has been amended from time to time in response to the changing business environment. These amendments include: The Companies (Amendment) Act, 2000 The Companies (Amendment) Act, 2001 The Companies (Amendment) Act, 2002 The Companies (Amendment) Act, 2006
Memorandum of Association
The memorandum of association of a company, is the document that governs the relationship between the company and the outside. It is one of the documents required to incorporate a company in the United Kingdom, Ireland, India, Bangladesh, Pakistan and Sri Lanka, and is also used in many of the common law jurisdictions of the Commonwealth.. The memorandum of association clearly lays down the name of the company, the type of company the objectives of the company, and the authorized capital.
Article of Association
The term articles of association of a company, or articles of incorporation, of an American or Canadian Company, are often simply referred to as articles The Articles are a requirement for the establishment of a company under the law of India, the United Kingdom and many other countries. Together with the memorandum of association, they constitute the constitution of a company. The Articles can cover a medley of topics, not all of which is required in a country's law. Although all terms are not discussed, they may cover: The issuing of shares (also called stock), different voting rights attached to different classes of shares Valuation of intellectual rights, say, the valuations of the IPR of one partner and, in a similar way as how we value real estate of another partner The appointments of directors - which shows whether a shareholder dominates or shares equality with all contributors Directors meetings - the quorum and percentage of vote Management decisions - whether the board manages or a founder Transferability of shares - assignment rights of the founders or other members of the company do Special voting rights of a Chairman and his/her mode of election The dividend policy - a percentage of profits to be declared when there is profit or otherwise Winding up - the conditions, notice to members Confidentiality of know-how and the founders' agreement and penalties for disclosure First right of refusal - purchase rights and counter-bid by a founder
Documents Required for Registration Memorandum of Association of the proposed company duly stamped. Articles of Association of the proposed company duly stamped. Form no. 1 (Declaration of Compliance) as per the Companies General
Rules & Forms 1956.
Form
no. 29 (for consent to act as director of a company) as per the Companies General Rules Forms 1956. per the Companies General Rules Forms 1956.
Form no.32 (particulars of directors, manager, or secretary) (in duplicate) as Copy of the name availability letter issued by the ROC earlier. Power of Attorney on a stamp paper of the representative who appears for
correction/alteration of any document.
Registration Process
Procedure Obtain director identification number (DIN) online Obtain digital signature certificate online Reserve the company name with the Registrar of Companies (ROC) online Memorandum and Articles of Association vetted and printed Stamp the company documents either at the superintendents or an authorized bank Get the Memorandum and Articles signed by at least two subscribers Get the certificate of incorporation Make a seal Obtain a Permanent Account Number (PAN) from UTI or NSDL Time to complete 1 day Cost to complete (Rs.) 100
1-6 days
400-2,650
2-3 days
500
Nil
1 day
Nil 4,000 for a company with authorized capital of Rs 1 lakh (Fee keep on reducing successively in slabs after this) 350 66 for fee and 5 for application form (if not downloaded)
3-7 days
1 day 15 days
Obtain a tax account number (TAN) for income taxes deducted at source from the Assessing Office Register for VAT with the sales tax officer Register with Employees Provident Fund Organization Register with ESIC (medical insurance) Filing for government
15 days, simultaneously with procedure 9 12 days simultaneously with procedure 10 2 days, simultaneous with procedure 11 1 day, simultaneously with procedure 11 15 days
55
Nil
Nil Nil
Share capital
Capital refers to the amount invested in the company so that it can carry on its activities. In a company capital refers to "share capital". The capital clause in Memorandum of Association must state the amount of capital with which company is registered giving details of number of shares and the type of shares of the company. A company cannot issue share capital in excess of the limit specified in the Capital clause without altering the capital clause of the MA. The following different terms are used to denote different aspects of share capital:1) Nominal, authorized or registered capital means the sum mentioned in the capital clause of Memorandum of Association. It is the maximum amount which the company raises by issuing the shares and on which the registration fee is paid. This limit is cannot be exceeded unless the Memorandum of Association is altered. 2) Issued capital means that part of the authorized capital which has been offered for subscription to members and includes shares allotted to members for consideration in kind also. 3) Subscribed capital means that part of the issued capital at nominal or face value which has been subscribed or taken up by purchaser of shares in the company and which has been allotted. 4) Called-up capital means the total amount of called up capital on the shares issued and subscribed by the shareholders on capital account. I.e. if the face value of a share is Rs. 10/- but the company requires only Rs. 2/- at present, it may call only Rs. 2/- now and the balance Rs.8/- at a later date. Rs. 2/- is the called up share capital and Rs. 8/- is the uncalled share capital. 5) Paid-up capital means the total amount of called up share capital which is actually paid to the company by the members.
Types of Shares
Shares in the company may be similar i.e. they may carry the same rights and liabilities and confer on their holders the same rights, liabilities and duties. There are two types of shares under Indian Company Law:1) Equity shares means that part of the share capital of the company which are not preference shares. 2) Preference Shares means shares which fulfill the following 2 conditions. Therefore, a share which is does not fulfill both these conditions is an equity share. It carries Preferential rights in respect of Dividend at fixed amount or at fixed rate i.e. dividend payable is payable on fixed figure or percent and this dividend must paid before the holders of the equity shares can be paid dividend. It also carries preferential right in regard to payment of capital on winding up or otherwise. It means the amount paid on preference share must be paid back to preference shareholders before anything in paid to the equity shareholders. In other words, preference share capital has priority both in repayment of dividend as well as capital.
except on winding up of the company. However, under the Indian Companies Act, a company cannot issue irredeemable preference shares. In fact, a company limited by shares cannot issue preference shares which are redeemable after more than 10 years from the date of issue. In other words the maximum tenure of preference shares is 10 years. If a company is unable to redeem any preference shares within the specified period, it may, with consent of the Company Law Board, issue further redeemable preference shares equal to redeem the old preference shares including dividend thereon. A company can issue the preference shares which from the very beginning are redeemable on a fixed date or after certain period of time not exceeding 10 years provided it comprises of following conditions : It must be authorized by the articles of association to make such an issue. The shares will be only redeemable if they are fully paid up. The shares may be redeemed out of profits of the company which otherwise would be available for dividends or out of proceeds of new issue of shares made for the purpose of redeem shares. If there is premium payable on redemption it must have provided out of profits or out of shares premium account before the shares are redeemed. When shares are redeemed out of profits a sum equal to nominal amount of shares redeemed is to be transferred out of profits to the capital redemption reserve account. This amount should then be utilized for the purpose of redemption of redeemable preference shares. This reserve can be used to issue of fully paid bonus shares to the members of the company. 3) Participating Preference Share or non-participating preference shares: Participating Preference shares are entitled to a preferential dividend at a fixed rate with the right to participate further in the profits either along with or after payment of certain rate of dividend on equity shares. A nonparticipating share is one which does not such right to participate in the profits of the company after the dividend and capitals have been paid to the preference shareholders.
Alteration of Capital
A company limited by shares can alter the capital clause of its Memorandum in any of the following ways provided that such alteration is authorized by the articles of association of the company:1) Increase in share capital by such amount as it thinks expedient by issuing new shares. 2) Consolidate and divide all or any of its share capital into shares of larger amount than its existing shares. E.g., if the company has 100 shares of Rs.10 each (aggregating to Rs. 1000/-) it may consolidate those shares into 10 shares of Rs100 each. 3) Convert all or any of its fully paid shares into stock and re-convert stock into fully paid shares of any denomination. 4) Subdivide shares or any of shares into smaller amounts fixed by the Memorandum so that in subdivision the proportion between the amount paid and the amount if any unpaid on each reduced shares shall be same as it was in case of from which the reduced share is derived. Cancel shares which have been not been taken or agreed to be taken by any person and diminish the amount of share capital by the amount of the shares so cancelled The alteration of the capital of the company in any of the manner specified above can be done by passing a resolution at the general meeting of the company and does not require any confirmation by the court. Reduction of the share capital can be effected only in the manners specified in Section 100-104 of the Act or by way of buy back under Section 77A and 77B of the Act. Notice of alteration to share capital is required to be filed with the registrar of the company in Form no 5 within 30 days of the alteration of the capital clause of the MA. The Registrar shall record the notice and make necessary alteration in Memorandum and Articles of Association of the company. Any default in giving notice to the registrar renders company and its officers in default liable to punishment with fine which may extend to the Rs50 for each day of default.
Pay off part of the paid up share capital on the footing that it may be called up again. If shares are of Rs100 each the company may pay off Rs25 per share on condition that when desired the company may call it again without extinguishing the liability of shareholders to pay the uncalled share capital. Reduce by a combination of the aforesaid methods 2) Where has suffered loss of capital, in such situation the company can write off or cancel the share capital which has been lost or is unrepresented by available assets. Where the company has passed the resolution for reducing the share capital, it must, by petition, apply to the court in the prescribed form to the court for an order confirming the reduction. Where the proposed reduction of share capital involves the either diminution of liabilities in respect of unpaid share capital or the payment to any shareholder of any paid-up share capital or in any other case if the court so directs the following provisions shall have effect:1) Every creditor of the company who on the date fixed by the court is entitled to debt from or any claim against the company shall be entitled to object to the reduction. 2) The Court shall settle a list of creditors so entitled to object and for that purpose shall ascertain as far as possible without requiring an application from any of the creditors, the names of creditors and the nature and amount of debt or claims and publish notices fixing the day or days within which creditors not entered in the list are to be entered if they so desire. 3) Where a creditor entered on the list whose debt or claim is not discharged or has not been determined does not consent to the reduction, the court may, if it thinks fit, dispense with the consent of the creditors if the company secures payment of this debt or claim by appropriating the following amounts as the court may direct: The company admits the full amount claim or debt or though not admitting it is willing to provide for it, then the full amount of debt or claim. If the company does not admit and is not willing to provide for the full amount of debt or claim or if the amount is contingent or not ascertained, then amount fixed by the court after due enquiry. 1) Where the proposed reduction of share capital involves either diminution of any liability in respect of the unpaid share capital or payment of any
2)
3)
4)
5)
6)
shareholder of any paid share capital, the Court may, having regard to any special circumstances of the case as it thinks proper so to do, direct that the above provisions shall not apply to any class or classes of creditors. If the court is satisfied with respect to every creditor of the company entitled to object to reduction that either his consent to the reduction has been obtained or his that debt or claim has been discharged or has been determined or has been secured, make an order confirming the reduction on such terms and conditions as it thinks fit. Where the court makes such an order, it may, if for any special reasons thinks fit and proper to do so, make an order directing that the company shall during such period commencing on and any time after the date of the order as is specified in the order add to its name as the last words the words "& Reduced" and make an order requiring the company to publish the same along with the reasons for the reduction or such other information in regard thereto as the court may think expedient with view to giving proper information to the public and if the court thinks fit the causes which led to reduction. Where the company is ordered to add to its name the words "& Reduced" those words shall until the expiry of period specified in the order shall be deemed to be part of the name of the company. The registrar, on the production to him, of an order of the court confirming the reduction of the share capital of the company and on delivering to him the certified copy of the order and of minutes approved by the court showing with respect to the share capital of the company as altered by the order register the reduction of share capital. On registration of order and minutes, the reduction of share capital shall take effect. Notice of the registration shall be published in such manner as the court may direct.
The above provisions of preferential allotment do not apply to conversion of loans or debentures in equity shares provided the terms of the loan or terms of issue of debentures give an option to convert such loans or debentures into shares of the company. Such terms and conditions must be approved before the issue of debenture or rising of the loan by the Central Government or must be in conformity with the rules made by the Government for this purpose. The proposal must be approved by the special resolution passed by Company at the general meeting before the issue of debentures or raising of the loan. For this purpose the Central Government has framed the Public Companies (Terms of issue of debentures and rising of loans with option to convert such debentures or loan into equity shares) Rules, 1977. The following is the broad gist of these rules: The debenture or loan is raised or issued either through private subscription or through issue of the prospectus to the public. The financial institutions specified for this purpose either underwrite or subscribe to the whole or part of the issue of debentures or sanction the raising of loan. Having regard to financial position of the company, the terms of issue of debentures or terms of loan (e.g. rate of interest payable on debenture and loan the capital of the company, its liabilities and its profits during immediately preceding five years and the current market price of shares of the company), the conversion must be either at par and or at premium not exceeding 25 percent of the face value of the shares. The provisions of rights and preferential issue do not apply in the following cases: Increase in share capital by a private company. Increase in share capital by a deemed public company. 2) Issue of shares at discount A company may issue shares at a discount i.e. at a value below its par value. The following conditions must be satisfied in connection with the issue of shares at a discount: The shares must be of a class already issued Issue of the shares at discount must be authorized by resolution passed in the general meeting of company and sanctioned by the company law board. The resolution must also specify the maximum rate of discount at which the shares are to be issued
Not less than one year has elapsed from the date on which the company was entitled to commence the business. The shares to be issued at discount must issued within 2 months after the date on which issue is sanctioned by the company law board or within extended as may be allowed by the Company Law Board. The discount must not exceed 10 percent unless the Company Law Board is of the opinion that the higher percentage of discount may be allowed in special circumstances of case. 3) Issue of shares at premium A company may issue shares at a premium i.e. at a value above its par value. The following conditions must be satisfied in connection with the issue of shares at a premium: The amount of premium must be transferred to an account to be called share premium account. The provisions of this Act relating to the reduction of share capital of the company will apply as if the share account premium account were paid up share capital of the company. Share premium account can be used only for the following purposes :a. In issuing fully paid bonus shares to members. b. In Writing off preliminary expenses of the company. c. In writing off public issue expenses such as underwriting commission, advertisement expenses, etc d. In providing for the premium payable paid on redemption of any redeemable preference shares or debentures. e. In buying back its shares 4) Issue of bonus shares Bonus shares are issued by converting the reserves of the company into share capital. It is nothing but capitalization of the reserves of the company. Bonus shares can be issued by a company only if the Articles of Association of the company authorizes a bonus issue. Where there is no provision in this regard in the articles, they must be amended by passing special resolution act at the general meeting of the company. Care must be taken that issue of bonus shares does not lead to total share capital in excess of the authorized share capital. Otherwise, the authorized capital must be increased by amending the capital clause of the Memorandum of association. If the company has availed of any loan from the financial institutions, prior permission is too obtained from the institutions for
issue of bonus shares. If the company is listed on the stock exchange, the stock exchange must be informed of the decision of the board to issue bonus shares immediately after the board meeting. Where the bonus shares are to be issued to the non-resident members, prior consent of the Reserve Bank should be obtained. Only fully paid up bonus share can be issued. Partly paid up bonus shares cannot be issued since the shareholders become liable to pay the uncalled amount on those shares. 5) Sweat Equity and Employee Stock Options Sweat Equity Shares mean equity shares issued by the company to its directors and / or employees at a discount or for consideration other than cash for providing know how or making available the rights in the nature of intellectual property rights or value additions. A company may issue sweat equity shares of a class of shares already issued if the following conditions are fulfilled: A special resolution to the effect is passed at a general meeting of the company The resolution specifies the number of shares, the current market price, consideration, if any, and the class of employees to whom the shares are to be issued At least 1 year has passed since the date on which the company became eligible to commence business. In case of issue of such shares by a listed company, the Sweat Equity Shares are listed on a recognized stock exchange in accordance with SEBI regulations and where the company is not listed on any stock exchange, the prescribed rules are complied with.
Share Certificate
A share certificate is a document issued by the company stating that the person named therein is the registered holder of specified number of shares of a certain class and they are paid upto the amount specified in the share certificate. The share certificate must bear the common seal of the company and also must be stamped under the relevant stamp act. One or more directors must sign it .It should state the name as well as occupation of the holder and number of shares, their distinctive number and the amount paid up. Every company making allotment of shares must deliver the share certificate of all shareholders within three months of allotment. In case of transfer of shares, the share certificate must be ready for delivery within two months after the shares are lodged with the company for transfer. If default is made in complying with the above provisions, the company and every officer of company who is in default is liable to punishment by way of fine which may extent to Rs500 for every day of default. The allotee must give notice to the company reminding of its obligation and even then, if default is not made good within 10 days of the notice, the allotee may apply to the Company Law Board for direction to the company to issue such share certificate in accordance with the Act. Application for this purpose must be made with the concerned regional bench of the Company Law Board by way of petition. The petition should be accompanied by the following documents: Copy of the letter of allotment issued by the company Documentary evidence for the allotment of the shares or debentures for transfer Copy of the notice served on the company requiring to make good the default Any other correspondence Affidavit verifying the petition Bank draft evidencing payment of application fee Memorandum of appearance with the Board copy of resolution of the board for the executive Vakalat Nama as the case may be Companies act does not prescribe any form for share certificate. A Shareholder must keep his share certificate in safe custody or in case of shares which are traded in demat mode, with the depository. The company may renew or issue a duplicate certificate if such certificate is proved to have been lost or destroyed or having being defaced or mutilated or torn or is surrendered to
the company. However, if the company, with the intention to defraud issues duplicate certificate, the company shall be punishable with the fine upto Rs10000 and every officer of the company who is in default with imprisonment upto 6 months or fine upto Rs10000 or both. Once a share certificate is issued by the company, the name of the person in whose favor it has been issued becomes the registered shareholder. Nobody can then deny the fact of his being the registered shareholder of the company. Similarly, if the certificate states that on each of shares a certain amount has been paid up, nobody can deny the fact that such amount has been paid up
Transfer Vs Transmission
Transfer 1. By a deliberate act. 2. Requires the execution of formal instrument of transfer. 3. There must be adequate consideration. 4. Stamp duty is payable.
Transmission 1. By the operation of law. 2. Requires evidence showing the legal entitlement. 3. There is no question of consideration. 4. Stamp duty is not payable.
In case of quoted shares on the stock exchange, before the first closure of the register of members after the stamped date, or within 12 months from the date of such presentation, whichever is later; In the case of unlisted shares, within 2 months from the date of presentation to the prescribed authority. The Central Government may extend these time periods on application to avoid hardship. The application should be made to the Regional Director of the CLB by the purchaser or his broker. These time limits have been prescribed to do away with the evil of Blank Transfers. 4) Next, in case the application is made by the transferor and relates to partly paidup shares, the company must give notice of the application to the transferee and register the transfer only if the transferee makes no objection to transfer within 2 weeks from the receipt of the notice. No response from transferee shall be presumed his consent for registration. No such consent need be given where the application for registration of transfer is made by the transferee himself, but in order to be sure that the instrument of transfer is genuine, a notice should be sent to the transferor, informing him about the lodgment of the instrument of transfer and stating that if no objection is raised within the specified time, the company will proceed to register the transfer. 5) If no objection is received either from the transferor or transferee within the specified time, then the work of registration of transfer is taken up. Now the secretary enters the details of the transfer in the Register of Transfers. 6) The secretary then convenes a meeting of the Board of Directors and places before it the Instruments of Transfer along with the share certificates and the Register of Transfers for their approval. If satisfied, the Board passes a resolution approving the transfer(s). 7) After all the steps have been duly complied with, the company registers the transfer by striking off the transferor's name from the Register of Members and entering the name of the transferee in its place. An endorsement is made on the back of the share certificate, recognizing the transferee as the new holder for it and the same is issued to the transferee within 2 months of the date of lodgment of the transfer. A listed company is, required to issue Certificates within 1 month. The procedural requirements associated with transfer, shall not apply to the transfer affected by the transferor and transferee who have availed the services of 'depository' since there is no need of executing a transfer deed.
Management
1) Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. 2) Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others.
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in selecting the information that is relevant to the user and is reliable. The principles of accountancy are applied to business entities in three divisions of practical art, named accounting, bookkeeping, and auditing. Accountancy is defined by the Oxford English Dictionary (OED) as "the profession or duties of an accountant". Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof." Accounting is thousands of years old; the earliest accounting records, which date back more than 7,000 years, were found in Mesopotamia (Assyrians). The people of that time relied on primitive accounting methods to record the growth of crops and herds. Accounting evolved, improving over the years and advancing as business advanced. Early accounts served mainly to assist the memory of the businessperson and the audience for the account was the proprietor or record keeper alone. Cruder forms of accounting were inadequate for the problems created by a business entity involving multiple investors, so double-entry bookkeeping first emerged in northern Italy in the 14th century, where trading ventures began to require more capital than a single individual was able to invest.
Meetings
An act or process of coming together as an assembly for a common purpose. A meeting is a gathering of two or more people that has been convened for the purpose of achieving a common goal through verbal interaction, such as sharing information or reaching agreement. Meetings may occur face to face or virtually, as mediated by communications technology, such as a telephone conference call, a skyped conference call or a videoconference. Thus, a meeting may be distinguished from other gatherings, such as a chance encounter (not convened), a sports game or a concert (verbal interaction is incidental), a party or the company of friends (no common goal is to be achieved) and a demonstration (whose common goal is achieved mainly through the number of demonstrators present, not verbal interaction and the consumption of doughnuts). Commercially, the term is used by meeting planners and other meeting professionals to denote an event booked at a hotel, convention center or any other venue dedicated to such gatherings. In this sense, the term meeting covers a lecture (one presentation), seminar (typically several presentations, small audience, one day), conference (mid-size, one or more days), congress (large, several days), exhibition or trade show (with manned stands being visited by passers-by), workshop (smaller, with active participants), training course, teambuilding session and kick-off event.
Types of Meetings
This article contains embedded lists that may be poorly defined, unverified or indiscriminate. Meetings are often held in conference rooms
Common types of meeting include: Investigative Meeting, generally when conducting a pre-interview, exit interview or a meeting among the investigator and representative Work Meeting, which produces a product or intangible result such as a decision Staff meeting, typically a meeting between a manager and those that report to the manager Team meeting, a meeting among colleagues working on various aspects of a team project Ad-hoc meeting, a meeting called for a special purpose Management meeting, a meeting among managers Board meeting, a meeting of the Board of directors of an organization One-on-one meeting, between two individuals Off-site meeting, also called "offsite retreat" and known as an Awayday meeting in the UK Kickoff meeting, the first meeting with the project team and the client of the project to discuss the role of each team member Pre-Bid Meeting, a meeting of various competitors and or contractors to visually inspect a jobsite for a future project. The meeting is normally hosted by the future customer or engineer who wrote the project specification to ensure all bidders are aware of the details and services expected of them. Attendance at the Pre-Bid Meeting may be mandatory. Failure to attend usually results in a rejected bid
Training meeting about sustainable design. The photo shows a training meeting with factory workers in a stainless steel ecodesign company from Rio de Janeiro, Brazil. This meeting is a recurring type that occurs every two weeks Since a meeting can be held once or often, the meeting organizer has to determine the repetition and frequency of occurrence of the meeting. Options generally include the following: A one-time meeting is the most common meeting type and covers events that are self-contained. While they may repeat often, the individual meeting is the entirety of the event. This can include a 2006 conference. The 2007 version of the conference is a stand-alone meeting event. A recurring meeting is a meeting that recurs periodically, such as an every Monday staff meeting from 9:00AM to 9:30 AM. The meeting organizer wants the participants to be at the meeting on a constant and repetitive basis. A recurring meeting can be ongoing, such as a weekly team meeting, or have an end date, such as a 5 week training meeting, held every Friday afternoon. A series meeting is like a recurring meeting, but the details differ from meeting to meeting. One example of a series meeting is a monthly "lunch and learn" event at a company, church, club or organization. The placeholder is the same, but the agenda and topics to be covered vary. This is more of a recurring meeting with the details to be determined.
Conclusion
The Companies Act 2006 (c 46) is an Act which forms the primary source of company law. It had the distinction of being the longest in British Parliamentary history: with 1,300 sections and covering nearly 700 pages, and containing 16 schedules (The list of contents is 59 pages long) but it has since been superseded, in that respect, by the Corporation Tax Act 2009. The Act was brought into force in stages, with the final provision being commenced on 1 October 2009. It superseded the Companies Act 1985. The Act provides a comprehensive code of company law for the United Kingdom, and made changes to almost every facet of the law in relation to companies. The key provisions are: The Act codifies certain existing common law principles, such as those relating to directors' duties. It implements the European Union's Takeover and Transparency Obligations Directives. It introduces various new provisions for private and public companies. It applies a single company law regime across the United Kingdom, replacing the two separate (if identical) systems for Great Britain and Northern Ireland. It otherwise amends or restates almost all of the Companies Act 1985 to varying degrees.