COMPANY LAW-I

STUDY MATERIAL

This study Material is Prepared by

Dr. Pradip Kumar Das, Associate Professor,
Department of Law and Governance,
CUSB,
for the students
 Company Law-I,
Advantages and Disadvantages of Corporate Form of
Business
ADVANTAGES:
1. Corporate Personality;
2. Limited Liability;
3. Perpetual Succession;
4. Transferability of Shares;
5. Separate Property;
6. Capacity to sue;
7. Flexibility and Autonomy
 Company Law-I,
Advantages and Disadvantages of Corporate Form of
Business
DISADVANTAGES:
1. Formalities and Expenses-
Procedures of registration of the company and other
activities are comparatively complex, cumbersome
and complicated in comparison to the other
businesses. It requires huge expenses also to carry
on day to day activities of the company.
2. Restricted Accessibility of Members[Corporate
Disclosure]-
In spite of legal framework for corporate disclosures
 Company Law-I,
Advantages and Disadvantages of Corporate Form of
Business
Members do not have open accessibility in the
internal management and day to day administration
of company.
3. Greater Social Responsibility-
Companies have greater social responsibilities in
comparison with other business houses.
4. Greater Tax Burden:
Tax burden on company is more than that on other
forms of business organization.
 Company Law-I,
Advantages and Disadvantages of Corporate Form of
Business
5. Elaborate & Detailed winding up procedures-
The winding up procedure of the company is very
complicated and detailed. It requires huge time and
huge expenditure .