A-32

Derived from two latin words com + pany where com means together and pany means a piece of bread so a company is an association of people who eat their meals together. As pe justice lindley it is an association of persons who contribute money to s common stock/capital employ it in trade or business and share profit or loss arising there from.

Incorporated/ registered body: A company means a company formed and registered under the companies act,1956 or an existing company registered under any of the previous laws. An artificial juristic person: exists only in the eyes of law and depends upon natural persons who are called directors.

Separate legal entity Separate property Limited liability: the liability of members of a company is limited either by shares or guarantee. Transferability of shares Common seal: it is used by a corporation as the symbol of its registration or incorporation.

On the basis of incorporation. -chartered company: It is formed by grant of a charter by the crown. The company draws their powers from the charter.

-statutory company: formed with special types of objects in mind created for public utility services of public interest.

Private limited company - restricts the right to transfer its shares. - limits the number of its members to 50. - prohibits any invitation to the public to subscribe for any shares or debentures of the company. - prohibits acceptance of deposits from persons other than its members, directors or their relatives.

Public limited company - not a private company - Is a private company a subsidiary of a public company. - has a minimum paid up capital of 5 lakh rupees or such higher paid up capital, as may be prescribed. Non-profit making or charitable company: is a limited company for promoting commerce, art, science , religion, charity or any useful object.

Limited by shares: the liability of each member is limited to the unpaid amount of shares and premium if any payable by him. Limited by guarantee: liability is restricted to a certain fixed amount for payment in the event of winding up. Companies with unlimited liability: are similar to that of partnership firm where the liability is unlimited.

Government company: any company in which not less than 51% of the paid up share capital is held by either the central government or by any state government or partly by central government and partly by one or more states. Subsidiary company: a company shall be deemed subsidiary of another if the company controls the composition of the board of the former; or controls more than half of the total voting power.

Indian company: registered in India Foreign company: registered outside India Listed company: is that company which lists its securities in the list of one or more recognized stock exchanges of the country. Unlisted company: is not listed in recognized stock exchanges of the country.