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INDIAN COMPANIES ACT 1956 HTTP://WWW.HELPLINELAW.COM/DOCS/MAIN.PHP3?ID=INCO1 The incorporation of Indian Company is governed by the Companies Act 1956.

The Companies Act is an Act to consolidate and amend the law relating to companies and certain other associations. It extends to the whole of India. Chapters I and II deal with the incorporation of a company and matters matters incidental thereto. PRIVATE COMPANY/PUBLIC COMPANY Private company means a company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its articles, 1. restricts the rights to transfer its shares, if any; 2. limits the number of its members to fifty not including(i) persons who are in the employment of the company, and (ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased; and 3. prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company; 4. prohibits any invitation or acceptance of deposits from persons other than its member, directors or their relatives; Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this definitions, be treated as a single member; Public company means a company which1. is not a private company; 2. has a minimum paid-up capital of five lakh rupees or such higher paid-up capital, as may be prescribed; 3. is a private company which is a subsidiary of a company which is not a private company. i. Every private company, existing on the commencement of the Companies (Amendment) Act, 2000, with a paid-up capital of less than one lakh rupees, shall, within a period of two years from such commencement, enhance its paid-capital to one lakh rupees. ii. Every private company, existing on the commencement of the Companies (Amendment) Act, 2000, with a paid-up capital of less than five lakh rupees, shall, within a period of two years from such commencement, enhance its paid-capital to five lakh rupees. iii. Where a private company or a public company fails to enhance its paid-up capital in the manner specified in sub-section (3) or sub-section (4), such company shall be deemed to be a defunct company within the meaning of section 560 and its name shall be struck off from the register by the Registrar. iv. A company registered under section 25 before or after the commencement ofCompanies (Amendment) Act, 2000 shall not be required to have minimum paid-up capital specified in this section.

The Companies Act, 1956


11. Prohibition of associations and partnerships exceeding certain number.

(1) No company, association or partnership consisting of more than ten persons shall be formed for the purpose of carrying on the business of banking, unless it is registered as a company under this Act, or is formed in pursuance of some other Indian Law. (2) No company, association or partnership consisting of more than twenty persons shall be formed for the purpose of carrying on any other business that has for its object the acquisition of gain by the company, association or partnership or by the individual members thereof, unless it is registered as a company under this Act, or is formed in pursuance of some other Indian law. (3) This section shall not apply to a joint family as such carrying on a business; and where a business is carried on by two or more joint families, in computing the number of persons for the purposes of sub-sections (1) and (2), minor members of such families shall be excluded. (4) Every member of a company, association or partnership carrying on business in contravention of this section shall be personally liable for all liabilities incurred in such business. (5) Every person who is a member of a company, association or partnership formed in contravention of this section shall be punishable with fine which may extend to 1[ten thousand rupees]
http://www.vakilno1.com/bareacts/companiesact/s11.htm

The Companies Act, 1956


109A. Nomination of shares.
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[109A. Nomination of shares.(1) Every holder of shares in, or holder of debentures of, a company may, at any time, nominate, in the prescribed manner, a person to whom his shares in, or debentures of, the company shall vest in the event of his death. (2) Where the shares in, or debentures of, a company are held by more than one person jointly, the joint-holders may together nominate, in the prescribed manner, a person to whom all the rights in the shares or debentures of the company shall vest in the event of death of all the joint-holders. (3) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of such shares in, or debentures of, the company, where a nomination made in the prescribed manner purports to confer on any person the right to vest the shares in, or debentures of, the company, the nominee shall, on the death of the shareholder or holder of debentures of, the company or, as the case may be, on the death of the joint-holders become entitled to all the rights in the shares or debentures of the company or, as the case

may be, all the joint-holders, in relation to such shares in, or debentures of the company to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner. (4) Where the nominee is a minor, it shall be lawful for the holder of the shares, or holder of debentures, to make the nomination to appoint, in the prescribed manner, any person to become entitled to shares in, or debentures of, the company, in the event of his death, during the minority.]
http://www.vakilno1.com/bareacts/companiesact/s109a.htm

Central Government Act


Section 11 in The Companies Act, 1956
11. Prohibition of associations and partnerships exceeding certain number. (1) No company, association or partnership consisting of more than ten persons shall be formed for the purpose of carrying on the business of banking, unless it is registered as a company under this Act, or is formed in pursuance of some other Indian law.
1. Subs. by Act 46 of 1977, s. 2, for the words and figures" Chapter XXXV of the Code of Criminal Procedure, 1898 ". 2. Subs. by Act 31 of 1988, s. 4 (w. e. f. 31- 5- 1991 ). 3. Ins. by s. 5, ibid. (w. e. f. 31- 5- 1991 ).

(2) No company, association or partnership consisting of more than twenty persons shall be formed for the purpose of carrying on any other business that has for its object the acquisition of gain by the company, association or partnership, or by the individual members thereof, unless it is registered as a company under this Act, or is formed in pursuance of some other Indian law. (3) This section shall not apply to a joint family as such carrying on a business; and where a business is carried on by two or more joint families, in computing the number of persons for the purposes of sub- sections (1) and (2), minor members of such families shall be excluded. (4) Every member of a company, association or partnership carry- ing on business in contravention of this section shall be personally liable for all liabilities incurred in such business. (5) Every person who is a member of a company, association or partnership formed in contravention of this section shall be punish- able with fine which may extend to one thousand rupees. Memorandum of Association http://indiankanoon.org/doc/1080390/

http://indiancorporatelaws.blogspot.in/ http://www.thecommonwealth.org/files/239362/FileName/India_Banking_BankingRegulationAct19 49.pdf