Kinds of companies
Published on: Mar 3, 2016
Transcripts - Kinds of companies
COMPANIESIncorporatedStatutoryCompanies RegisteredCompaniesExistingCompaniesNewly FormedCompaniesCompanieslimited bysharesCompanieslimited byguaranteeUnlimitedcompaniesPrivate Co. And PublicCompanies
1. Statutory Companies – Companies createdby a special act of the legislature. Theseare mostly concerned with public utilities.Reserve Bank of India, LIC, GIC, Railways,Tramways, NHAI.2. Registered Companies – Which are formed& registered under the companies act,1956. BHEL, SAIL, GAIL, BEML, ONGC, OILand RNRL.
1. Companies with limited liability:(A). Companies limited by shares.The liability of the members limited onlyup to face value of the share. It may bepublic or a private company.(B). Companies limited by guarantee – Liabilityof the member is limited to a fixed amountwhich the member undertake to contributeto the assets of company in the event ofwinding up.
2. Unlimited companies – Section 12 specificallyprovides that any 7 or more persons ( 2 or more incase of a private company ) may form anincorporated company, without limited liability. Incase of such a company, every member is liable forthe debts of the company.
1. Private Company : A company which has a minimum paid upcapital of Rs. 1,00,000 or higher paid upcapital as may be prescribed, and by itsArticles-(prohibits any invitation to public) A) restricts the right to transfer its shares, ifany. This restriction is meant to preserve theprivate feature of the company. Limits the members to 2-50. Donot accept deposits accept from members,also no subscription from members
2. Public Company- means a company which(a) Is not a private company and members 7-unlimited(b) Has min paid up capital of Rs. 5,00,000.(c) It may be :- Listed public company Unlisted public company Diff between both When does pvt co becomes public and vice versa
1. Holding company :- a company is holdingof another company if it has control overthat other company.2. Subsidiary :- a company is known assubsidiary of another when the control isexercised by latter. I.e. controlling BOD,majority of shares, subsidiary of anothersubsidiary
1. Govt. company:- it means any company inwhich not less than 51% of paid up capitalis held by central, state or partly bycentral & partly by state.Rules- appointment of auditor and auditreports to comptroller, also annual reportto parliament2. Non- govt. company:- it is controlled &operated by private capital
It means any company incorporated outsideIndia which has established its place ofbusiness in India , where a minimum of 50%of the paid up share capital( equity orPreference) /Mix is held by one or morecitizens of India or one or more bodycorporates incorporated in India.
This is the company in which one man holdspractically the whole of the share capital ofthe company & in order to meet thestatutory requirements of min members,some dummy members who are mostly hisrelations or friends hold just 1 or 2 shareseach. E.g- A private company is registered with ashare capital of Rs 5,00,000 divided into 5000shares of 100 each. Of these shares 4999shares are held by A and one share is held byA’s Wife, B. This is a one man Company.