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Companies act 1956

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DefnitionCompanies act defnes as A company

ormed and registered under this act or anexisting company

An Existing company means a companyormed and registered under any o theormer companies act.

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Characteristics o a Company

Incorporated AssociationArtifcial Person

Separate Legal Entity

Limited Liaility

Perpetual Existence

Common Seal

Capacity to Sue

Separate Property!ranseraility o Shares

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Classifcation o CompaniesOn the basis of Incorporation"1)Chartered Companies"#Special charter granted y !he $ing or

%ueen eg. East India Company

2)Statutory Companies"#Companies ormed y special act oParliament eg. &eser'e (an) o India

3)Registered Companies"#Companies *hich are incorporatedunder companies act +,-

On the basis of Liability

+) Limited Companies" Liaility is limited to the extent o a ace'alue o a share held y them

2)Unlimited Companies"#any / or more persons 01or more in p't

company2e'ery memer is liale or the dets o the company

3)Guarantee Companies"#Liaility o the memer is limited to afxed amount *hich memer contriutes to the asset o thecompany in case o its *inding up

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Ctd.On the basis of Control"#

1)Holding Company 3o another company i it has controlo'er that other company

2)Subsidiary Company"#Control is exercised y the latter

Controlling the composition o oard o directors 4olding o ma5ority o shares

Susidiary o another susidiary.

On the basis of Ownership

1)Government Company #atleast -+6 o the paid#up sharecapital is held y the go'ernment or central go't .

2)Foreign Company #any company incorporated outsideIndia *hich has a place o usiness in India

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Ctd.

On the basis of Members "#

1)rivate Company#one *hich y Article oAssociation

&estricts the right o the memer to transer shares

Limits the numer o memers to -7 excluding pastor present employees

Prohiits any in'itation to the pulic to suscrieor its shares or Deentures.

2)ubli! Company#company *hich is not a pri'atecompany

8ice#'ersa