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According to Section 3(1)(i) of the Companies Act, a company means, A company formed and registered under this Act or an existing company.
association of persons who contribute money to a common stock known as capital of the company. They have existence independent of its members.
mere collection of persons who have agreed to join in partnership to run a business and share the profits.
exercise of the royal prerogative has power to create a corporation by the grant of a charter to persons assenting to be incorporated. "uch companies or corporations are known as chartered companies. incorporated by means of a special Act of the #arliament or any "tate $egislature. "uch ompanies are called statutory companies. "uch companies are generally formed to carry out some special public undertakings% e.g.% railways% waterways% gas% electric generation etc. They are governed by the Acts creating them.
under the ompanies Act%&'()% or the earlier ompanies Acts are called registered companies. "uch companies come into existence when they are registered under the ompanies Act and a ertificate of Incorporation is granted to them by the *egistrar.
A company registered under the Act may be: i. Companies limited by shares: In a company
limited by shares the liability of the members is limited by the memorandum to the amount% if any% unpaid on the shares respectively held by them.
registered company public or private% in which the liability of members is limited to such amounts as they may respectively undertake by the memorandum to contribute to the assets of the company in the events of its being wound up. iii. Unlimited Companies: A company not having any limit on the liability of its members is termed as unlimited company.
the ompanies ,Amendment-Act%.///% a private company means a company which: ,a- has a minimum paid up capital of one lakh rupees or such higher amount as may be prescribed by the 0overnment1 ,b- has a minimum of . and maximum of members excluding employees1 ,c- restricts the right of members to transfer its shares % if any1 ,d- prohibits any invitation to the general public to subscribe for its shares or debentures1 ,e- does not invite the public to subscribe to its deposits. 2.g.:3 Ambika Industries #vt. $td.% #aras #harmaceutical #vt. $td. etc.
,iv- of the ompanies ,Amendment-Act%.///% a public company means a company which: ,a- is not a private company1 and ,b- has a minimum paid up capital of five lakh rupees or such higher amount as may be prescribed by the 0overnment.
E.g.:-*eliance Industries $td.% Tata Iron 4
more kinds of ompanies: Government Companies: It is a company of which (&8 or more e9uity share capital is held by the 0overnment. *est of the shares can be held by private individuals or businessmen. oreign Companies: It is incorporated outside India but has a place of business in India. "ome of the popular 6: s operating in India are oca ola,;"A-% #epsi ola,;"A-% "ony,<apan-%etc.
Regulating Act
PARTNERSHIP FIRM
Indian #artnership
COMPANY
Act%&'+.
Number of Members
PARTNERSHIP FIRM
6inimum3. 6aximum3./ in ordinary
COMPANY
#rivate ompany: 6inimum3.% 6aximum3(/ #ublic ompany: 6inimum3=% 6aximum3
Separate Entity
PARTNERSHIP FIRM COMPANY
Liability
PARTNERSHIP FIRM COMPANY
;nlimited
$imited
Management
PARTNERSHIP FIRM
All partners are entitled
COMPANY
>nly members of the
to participate.
Transfer of Interest
PARTNERSHIP FIRM
:ot possible without the
COMPANY
?reely transferable
Financial Resources
PARTNERSHIP FIRM
COMPANY
Winding up
PARTNERSHIP FIRM
COMPANY
annot be wound up at will. @inding up regulated as per provisions of the ompanies Act.
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