Professional Documents
Culture Documents
1. Private Company :
1. Company which has a minimum paid up capital of
Rs 1,00,000.
2. Minimum members: 2 - 50
2. Public company:
1. Minimum paid up capital: 5 lakhs
2. Minimum no of members: 7
Companies Act 1956 16
Classification of
Companies
Companies on the basis of Liability
Companies with limited liability
(a) Companies limited by shares: It is a registered company
with the liability of members limited by the memorandum
of association to the amount, if any, unpaid on the shares
respectively held by them.
Unlimited company:
It is a company in which the liability of the members is
not limited by its memorandum.
The members of such companies may be required to
pay the losses from their personal property.
Because such companies have separate legal entity, its
creditors cannot file a suit against the members
directly.
Qualification of a Director
The Act prescribes no academic or professional
qualification for a director. The Articles may
provide what qualifications the company’s directors
must possess.
Disqualification of Directors
Following persons are not eligible to be
directors
Persons of unsound mind
An Undischarged insolvent
Penalty for default in complying with section 166 & 167 (section 168)
Exceptions
The central government may exempt any class of company from the requirements mentioned
above subject to conditions as it may impose
A public company or a private company which is a subsidiary of a public company may by its
article fix the time for its AGM and may also in one AGM fix the time for the subsequent
AGM
A private company which is not a subsidiary of a public company may in a like manner and
also by a resolution agreed to by all the members thereof, fix the time and place for its AGM
Companies Act 1956 45
Extra Ordinary General Meetings
(Sec 169)
Every general meeting other than the statutory meeting and the annual general
meeting or any adjournment thereof, is an extraordinary general meeting
Such meeting is usually called by the Board of Directors for some urgent
business which cannot wait to be decided till the next AGM.
Every business transacted at such a meeting is special business.
If Quorum not present within 30 minutes of the time fixed for the meeting :
Notice must be given in writing to every director for the time being in India and at the usual
address in India to every other director