Statutory Companies Crated By special Act RBI LIC and Industrial Finance Companies Init Trust of India, State bank of India Concerned with public utilities railways and enterprises of national importance Registered Companies These are companies formed and registered under the Companies Act 1956 regulated by Companies Act Classification of the Basis of Liability
1. Companies with limited liability Companies limited by Shares Companies Limited By guarantee
2. Unlimited Companies III. Classification on the Basis of Number of members 1. Private Company Restricts right to transfer the shares limits the no of members to 50 Prohibits invitation to public for any shares Prohibits from acceptance of deposit 2. Public Company - Min capital 5 lakh and min no of members 7 - private company subsidiary of public company
Differences between private and public company Sl. No Private Public 1 Min 2 members Min 7 members 2 Max 50 members No limit 3 Min paid up capital 1 lakh Min paid up capital 5 lakh 4 At least 2 directors At least 3 directors 5 Can't raise capital Can raise capital by inviting public subscription or by private placement 6 Raises deposits only from members and their relatives May raise deposits from public as well 7 Consent of director need not filed Consent of director needs to be filed along with registration documents 8 No restriction on managerial remuneration Restriction on total managerial remuneration 9 Shares not transferable except provisions of the article Shares are freely transferable and may be even quoted on a stock exchange 10 Word Private Ltd is mandatory The word Public Ltd is mandatory Conversion of Private Company to Public Company
1 Conversion by default Sec 43 2. Conversion by choice - Pvt company can alter AOA in line with public company AOA. It ceases to be Private company on the date of alteretaion. Classification on the basis of Control
1. Holding Company 2. Subsidiary Company ( Sec 4 )
On the basis of ownership Government company - Sec 617 Where at least 51% paid up share capital holding by Govt. Central or state Govt Foreign Company Sec 591 Company incorporated outside India but having place of business in India