LEGAL ASPECTS OF BUSINESS

Companies Limited by Shares, Limited by Guarantee  &

Unlimited Companies​

GROUP 1
Name​ Roll No​ Email ID​
Aadhishri Padmaja​ 2010120001​ ap835@snu.edu.in​

Bhupendra Mehra​ 2010120009​ bm413@snu.edu.in​

Kartik Aggarwal​ 2010120017​ ka643@snu.edu.in​

Kartikey Bhardwaj​ 2010121054​ kb218@snu.edu.in​

Pragati Goel​ 2010120024​ pr492@snu.edu.in​

Shreya Khilariwal​ 2010120037​ sk556@snu.edu.in​

 • What is a Company?
• Types of Companies
FLOW OF • Companies Limited by share
PRESENTATION • Companies Limited by Guarantee
• Unlimited Company
• Examples of private and public
companies
 What is a Company?

The section 2(20) defines company as "any company

formed and registered under the Companies Act, or
under any previous Company Law. 
 Types of Companies
COMPANIES

ON THE BASIS OF MODE OF INCORPORATION

REGISTERED COMPANIES STATUTORY COMPANIES CHARTERED COMPANIES

ON THE BASIS OF LIABILITY

COMPANIES LIMITED BY COMPANIES LIMITED BY

UNLIMITED COMPANIES
SHARE GUARANTEE
 The liability of the members, in the case of a
limited company, may be limited with reference to
LIMITED the nominal value of the shares, respectively held
COMPANY  by them or to the amount which they have
respectively guaranteed to contribute to the event
of winding up of the company.. 
 Types of Limited Companies 
• Private Company – • Private Company – • Public Limited
limited by shares (LTD) limited by guarantee Company (PLC)
(LTD)
• Separate legal entity
owned by shareholders. • It is similar to a
• Often are social enterprises
and non - profit organizations. private company
• In case of winding up,
limited by shares
shareholders are • Members of the company do
liable only up to not purchase any shares in but here the share
the value of any this type of company. can be sold to the
investment they have • All profits are reinvested back public. 
made in the shares of into either the organization
the company.  itself or its objectives. 
 Companies Limited by Shares
• As per Section 2(22) Company limited by shares means a company
having the liability of its members limited by the memorandum to
the amount if unpaid on the shares respectively held by them. 
EXAMPLES

Reliance Industries Ltd. Infosys Ltd. Tata Consultancy Ltd.

 Companies Limited by
Guarantee
• Members of the company give an undertaking in
Memorandum of Association (MOA) to contribute
a certain amount at the time of winding up.  Example -
• Personal assets of members of the company are Bharat Egg
Producer's
not liable for debts of the company.
Association
• No share capital required. Initially requires for
working but later operates on grants,
donations, subscriptions etc.
 Unlimited Company
 According section 2(92), 
 "Unlimited company" means a company not having any
limit on the liabilities of its members.
• Members of the company are liable only at the time of
winding up of the company. 
• Liabilities of its members might stretch up to their assets
in order to meet the obligations of the company. 
• May have the share capital or not.
• Not directly liable to the creditors.
Examples – 
1) Amway India Enterprise Pvt Ltd.
2) GE India Company
 EXAMPLES
• Private Limited Company – Parle Products Pvt
Ltd.

• Public Limited Company – Reliance Jio

Infocomm Ltd.

• Public Listed Company – Coal India Ltd