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company_law:company-introduction

Company Introduction

A Company is a legal person. It is an association of a number of individuals (not being a partnership firm) formed and registered under the Companies for the purpose of carrying on trade or other legitimate business.

Any seven or more persons in the case of a Public company, or any two or more up to two hundred persons in the case of a private company, associated for any lawful purpose may, by subscribing their names to a Memorandum of Association and otherwise complying with the requirements Of the Companies Act, in respect of registration, form an incorporated company with or without limited liability.
According to the Companies Act,- Company means a company formed and under the Companies Act or an existing company law.
Existing company means a company formed and registered under any of the provisions of the company laws.

Private Company means a company which, by its articles,

  • restricts the right to transfer its shares if any,
  • limits the number of its members to fifty (minimum-two)
  • prohibits any invitations to the public to subscribe for any share in, or debentures of, the company.

Public company means a company which is not a private company (Minimum number of members-seven).

Insurance Company means a company which carries on the business of insurance, either solely or in conjunction with any other business.

Limited Company means a company limited by shares or by guarantee.

Government Company means any company in which not less than fifty one percent of the paid up share capital is held by the Government. (Central Government or State Government or both)

Articles means the Articles of Association of a company as originally framed, or as altered from time to time in pursuance of the Companies Act.

Memorandum means the memorandum of association of a company as originally framed or as altered from time to time in pursuance of the Companies Act.

Prospectus means any document inviting offers from the public for subscription or purchase of any share or debenture.


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