CORPORATE LAW UNIT 1: Types of Companies (part-I)
Description: CORPORATE LAW UNIT 1: Types of Companies (part-I) PREPARED BY: Biswajit Sarmah Asst. Professor Dept. of Commerce, Paschim Guwahati Mahavidyalaya Types of Companies Types of Companies under Companies Act, 2013: A. Types of Company on the
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slide1. CORPORATE LAW UNIT 1: Types of Companies (part-I) PREPARED BY: Biswajit Sarmah
Asst. Professor
Dept. of Commerce, Paschim Guwahati Mahavidyalaya<br>
slide2. Types of Companies Types of Companies under Companies Act, 2013:
A. Types of Company on the basis of Incorporation
1. Statutory Companies
2. Registered Companies
B. Types of Company on the basis of Liability
1. Companies limited by shares
2. Companies limited by guarantee
3. Unlimited Liability Companies
C. Types of Company on the basis of number of members
1. Public Company
2. Private company
3. One Person Company (OPC)<br>
slide3. D. Types of Company on the basis of Domicile
1. Foreign company
2. Indian Company
E. Other Types of Company:
1. Section 8 Company
2. Government Company
3. Small Company
4. Subsidiary Company
5. Holding Company
6. Associate Company
7. Dormant Company<br>
slide4. A. Types of Company on the basis of Incorporation 1. Statutory Companies :
These companies are constituted by a special Act of Parliament or State Legislature. These companies are formed mainly with an intention to provide the public services.
Examples of these types of companies are Reserve Bank of India, Life Insurance Corporation of India, etc.
2. Registered Companies:
Companies registered under the CA, 2013 or under any previous Company Law are called registered companies.<br>
slide5. B. Types of Company on the basis of Liability 1. Companies limited by shares:
A company that has the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them is termed as a company limited by shares. Companies limited by shares are by far the most common and may be either public or private.
2. Companies limited by guarantee:
Company limited by guarantee is a company that has the liability of its members limited to such amount as the members may respectively undertake, by the memorandum, to contribute to the assets of the company in the event of its being wound-up. In case of such companies the liability of its members is limited to the amount of guarantee undertaken by them.<br>
slide6. B. Types of Company on the basis of Liability 3. Unlimited Liability Companies:
A company not having a limit on the liability of its members is termed as unlimited company. Here the members are liable for the company’s debts in proportion to their respective interests in the company and their liability is unlimited.<br>
slide7. C. Types of Company on the basis of number of members 1. Public Company:
As per Section 3(1) of the CA, 2013, a Public company may be formed for any lawful purpose by 7 or more persons. Every public company shall have minimum 3 director in its Board. Section 4(1)(a) of the CA, 2013 states that a public company is required to add the words “Limited” at the end of its name.
Only the shares of a public company are capable of being dealt in on a stock exchange.
A private company that is a subsidiary of a public company, will be considered a public company.<br>
slide8. C. Types of Company on the basis of number of members 2. Private company:
As defined u/s 2(68) of the CA, 2013 –
A private company means a company which by its articles—
a. Restricts the right to transfer its shares;
b. Limits the number of its members to 200 hundred (except in case of One Person Company).
As per Section 149(1) of the CA, 2013, every Private company shall have minimum 2 director in its Board. A private company is required to add the words “Private Ltd” at the end of its name.<br>
slide9. C. Types of Company on the basis of number of members One Person Company (OPC):
As defined u/s 2(62) of the CA, 2013 – One Person Company (OPC) means a company which has only one person as a member. Section 3(1) of the CA, 2013 states that OPC may be formed for any lawful purpose by 1 person as private company. OPC shall have minimum 1 director in its Board, its only member can also be the director of such OPC. A unique feature of OPCs that separates it from other kinds of companies is that the sole member of the company has to mention a nominee while registering the company. Since there is only one member in an OPC, his death will result in the nominee choosing or rejecting to become its sole member.
(To be continued)
Data Source: taxguru.in<br>
Asst. Professor
Dept. of Commerce, Paschim Guwahati Mahavidyalaya<br>
slide2. Types of Companies Types of Companies under Companies Act, 2013:
A. Types of Company on the basis of Incorporation
1. Statutory Companies
2. Registered Companies
B. Types of Company on the basis of Liability
1. Companies limited by shares
2. Companies limited by guarantee
3. Unlimited Liability Companies
C. Types of Company on the basis of number of members
1. Public Company
2. Private company
3. One Person Company (OPC)<br>
slide3. D. Types of Company on the basis of Domicile
1. Foreign company
2. Indian Company
E. Other Types of Company:
1. Section 8 Company
2. Government Company
3. Small Company
4. Subsidiary Company
5. Holding Company
6. Associate Company
7. Dormant Company<br>
slide4. A. Types of Company on the basis of Incorporation 1. Statutory Companies :
These companies are constituted by a special Act of Parliament or State Legislature. These companies are formed mainly with an intention to provide the public services.
Examples of these types of companies are Reserve Bank of India, Life Insurance Corporation of India, etc.
2. Registered Companies:
Companies registered under the CA, 2013 or under any previous Company Law are called registered companies.<br>
slide5. B. Types of Company on the basis of Liability 1. Companies limited by shares:
A company that has the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them is termed as a company limited by shares. Companies limited by shares are by far the most common and may be either public or private.
2. Companies limited by guarantee:
Company limited by guarantee is a company that has the liability of its members limited to such amount as the members may respectively undertake, by the memorandum, to contribute to the assets of the company in the event of its being wound-up. In case of such companies the liability of its members is limited to the amount of guarantee undertaken by them.<br>
slide6. B. Types of Company on the basis of Liability 3. Unlimited Liability Companies:
A company not having a limit on the liability of its members is termed as unlimited company. Here the members are liable for the company’s debts in proportion to their respective interests in the company and their liability is unlimited.<br>
slide7. C. Types of Company on the basis of number of members 1. Public Company:
As per Section 3(1) of the CA, 2013, a Public company may be formed for any lawful purpose by 7 or more persons. Every public company shall have minimum 3 director in its Board. Section 4(1)(a) of the CA, 2013 states that a public company is required to add the words “Limited” at the end of its name.
Only the shares of a public company are capable of being dealt in on a stock exchange.
A private company that is a subsidiary of a public company, will be considered a public company.<br>
slide8. C. Types of Company on the basis of number of members 2. Private company:
As defined u/s 2(68) of the CA, 2013 –
A private company means a company which by its articles—
a. Restricts the right to transfer its shares;
b. Limits the number of its members to 200 hundred (except in case of One Person Company).
As per Section 149(1) of the CA, 2013, every Private company shall have minimum 2 director in its Board. A private company is required to add the words “Private Ltd” at the end of its name.<br>
slide9. C. Types of Company on the basis of number of members One Person Company (OPC):
As defined u/s 2(62) of the CA, 2013 – One Person Company (OPC) means a company which has only one person as a member. Section 3(1) of the CA, 2013 states that OPC may be formed for any lawful purpose by 1 person as private company. OPC shall have minimum 1 director in its Board, its only member can also be the director of such OPC. A unique feature of OPCs that separates it from other kinds of companies is that the sole member of the company has to mention a nominee while registering the company. Since there is only one member in an OPC, his death will result in the nominee choosing or rejecting to become its sole member.
(To be continued)
Data Source: taxguru.in<br>