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Company means ,´ A company formed and registered

under this act or an existing company.´

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A company is an 

 created by law having:-

‡Separate identity
‡Perpetual succession
‡Common seal
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A company may be incorporated as Private or Public
company. Min no. of persons:
 !n case of Public co - 7
 !n case of Private co - 2

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A company is a legal person in the eyes of law distinct
from its members. Case Salomon v Salomon &Co. Ltd
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Co. is a legal entity separate & distinct from the individuals who compose it.
The co. is not in law the agent of the subscribers or trustee for them

 
 






  
 
 



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mo member is liable to contribute anything more than the
nominal value of the shares held by him. The members cannot
be held liable for the debts incurred by the company.

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A company is capable of owning, enjoying and disposing
of property in its own name although the capital and assets of the
co. are contributed by members.

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Death, insanity of any member does not affect the
continuity of the business.
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Shares are movable property transferable in the manner
provided in the article. !n public company shares are freely
transferable.

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Members don't participate in day to day affairs. Management
lies in the hands of Board Of Directors.

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As a legal person co. can sue and be sued in
its own name.

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Every company must have a seal with its name engraved on it.
Common seal is used as substitute for signature. A document not
bearing common seal is not authentic and has no legal binding on
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ÿ These companies are incorporated by 
 
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ÿ Companies intend to carry on business of national
importance.
ÿ Use word 'L!M!TED¶ as part of their names.
ÿ Audit is done under supervision of Auditor General
of !ndia
ÿ They are  required to have MOA and AOA.
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D Company registered under Companies Act
D The liability of every member shall be limited to
the unpaid amount on shares held by him (if
stated in memorandum)

D Liability can be enforced during existence or

winding up of the company.
D The liability to pay the guaranteed amount arise
only in the event of winding up of the company

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Every member is liable to contribute to the assets
of the company until all debts of the company are
paid in full.
 Acc to sec3(1)(iii) !t means a company which has a
minimum paid up capital of Rs.1lac and by its
article of association:

a) Restricts right to transfer shares

b) Limits number of members to 50
c) Prohibits invitation to company to subscribe for
shares and debenture
Acc to sec3(1)(iv), µPublic companies means a
company which:
1. Has minimum paid up capital of Rs.5lac or
higher paid up capital.

2. Do not have restriction on transfer of shares.

3. Does not limit the maximum numbers of

members
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D As regards audit

D As regards annual report

D As regards the application of companies act

 
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Xhich are incorporated in !ndia.

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Company incorporated outside !ndia, but have a
place of business in !ndia. [Sec 591(1)]

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ÿ Copy of MOA, AOA, Charter of company.

ÿ List of directors and secretary of company giving name,
address, nationality
ÿ Full address of principal office of the company.