NATURE OF

COMPANY

Presented By:Baneshwar

MahatoBBA, 3rd Sem.

Nature Of

CompanyDefinition

It is association of individuals, formed for any common purpose, common trade or common business and share profit & loss arising there from.

Characteristics Of A Company

Separate Legal Entity..

Limited Liability.Perpetual Succession.Common Seal.Transferability of Shares.Separate Property.Capacity to sue.

Lifting Or Piercing The Corporate Veil

Protection Of RevenuePrevention Of Fraud Or Improper ConductDetermination Of Character Of A Company Whether It Is EnemyWhere The Company Is ShamCompany Avoid Legal ObligationCompany Acting As an Agent Of ShareholderAvoidance Of Welfare LegislationProtecting Public Policy.

Statutory Exceptions

Number Of Members Below Statutory Minimum [Sec.45]Failure To Refund Application Money [Sec.69(5)]Misdescription Of Company’s Name[Sec.147(4)]Fraudulent Trading[Sec.542]Holding And Subsidiary Companies

Company Distiguished From Partnership

Regulating Act.Mode Of CreationLegal StatusManagementTransferability Of IntersetAuthority Of MembersPowerRestriction On Powers.

Company Distiguished From Partnership

Insolvency Of Firm And Winding Up Of CompanyDebts.Dissolution.Number Of Members.MinimumMaximumMaintenance Of Books.

Company Law In INDIA

Company legislation in India owes its origin to the English Company Law. The Companies Acts passed from time to time in India have been following the English Companies Acts with Certain modifications to suit Indian Conditions.

Registration of joint stock companies[1850]-Based on English Companies Act, 1844.Limited Liability Act of 1855.Joint Companies Act of 1856- Replaced Both Acts of 1844 & 1855.Join Companies Act 1857 passed in IndiaCompanies Act 1866.[Based English Companies Act 1862].Recast of The Companies Act1866 in 1882.Act of 1913.

History of Company Law

The Companies Act, 1956

The act has been amended several times since it was codified. Major amendments to the Act were made in 2002.

The Amendment Act 2002-Brought Changes.

Company Law Board replaced by NCLT.

THANKS