Professional Documents
Culture Documents
Term Paper
of
Business Legislation
Submitted By:
Praveen Rai
Company Law
Question 1: What is company and what are its characteristics?
Characteristics of a Company:
1. Separate Legal Entity: It has an independent corporate
existence. Any of its members can enter into contracts with it in the
same manner as any other individual can and he can’t be held liable
for the acts of the company even if he holds virtually the entire
share capital. The company’s money and property belongs to the
company & not to shareholders.
4. Where the Company is a Sham: The Court also lifts the veil
where a company is a mere cloak or sham (hoax).
(b) Limits the no. of its members to 50 not including the employee-
members (present or past)
(a) has a minimum paid-up capital of Rs. 5 lakh or such higher paid-
up capital, as may be prescribed.
2. The outsiders dealing with the company shall know with certainty
as to what the objects of the company are and as to whether the
contractual relation into which they contemplate to enter with the
company is within the objects of the company.
Alteration of Memorandum:
Conditions are as follows:
Procedure of Alteration:
I. A Special resolution shall be passed at a general
meeting so as to change the place of registered office from
one State to another.