company classification

8/11/2019 Company Classification

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Company classification

Mode of incorporation Number of

members

Control Ownership Nationality

Charteredmonarch.

The East India Company

The Bank of England.

Wide Powers.

Dnt exist in india.

PrivateMax 50 members.

Share transferring rights

restricted.

Price share decided by

director.

Min members=2.

Pvt aft d name.

HoldingOne company controls other.

3 ways:

Holding >50% normal value.

Holding >50% voting rights.

Right to appoint majority of

directors.

Affairs of both companies

managed by holding

company.

Governmentnot less than 51% of the paid

up capital is held by the

government.

company subsidiary to a

government company.

Auditors appointed by govt.

Annual report placed bfr

Both parliament.

IndianRegistered in India.

Registered office in India

Members nationality is

immaterial.

StatutoryRBI.

Derive power frm act.

NO MOA & AOA.

Meet social need, not profit.

Companies act apply to it.

Publicnot restrict the transfer

of shares.

no restriction on the

maximum number of

the members.

invites the general

public.

SubsidiaryControl is exercised by

holding company.

Non-governmentother companies, except the

Government Companies, are

called non-government

companies.

do not satisfy the

characteristics of a

government company.

ForeignIncorporated outside India.

Business placed in India.

RegisteredUnder companies act 1956.

Registered companies.

Most popular mode of

incorporation.

3 types:

Limited by share.

Limited by guarantee.

Unlimited company.


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Points of distinction between promissory note and bill of exchange:

Number of parties

Promise and order

maker of PN is the debtor, drawer of bill is the creditor

Nature of liability for PN is primary and absolute and is secondary and conditional for the later

The maker of the note cannot be the payee

PN requires no Acceptance as it is signed bythe person who is liable to pay. A bill must be accepted before it is

presented for payment

Notice of dishonor: notice of dishonor required in case of bill to all the persons liable to pay (drawer and endorsers).

No notice required for PN

Distinction between cheque and a bill of exchange:

Instrument drawn on: Bill drawn on any person including banker whereas cheque drawn only on banker

Acceptance required: bill must be accepted before drawee can be called upon to make the payment whereas

cheque requires no acceptance

When payable: Bill can have 3 days of grace whereas a cheque is always payable on demand

Crossing of instrument: cheque may be crossed but not a bill

Stamp


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Endorsement:

When the maker or holder of the negotiable instrument signs the same, otherwise than as such maker, for purpose of

negotiation, on the back or face thereof or on a slip of paper annexed thereto, he is said to indorse the same

Kinds of Endorsement:

Blank or General (only signature, no name of endorsee)

Full or Special (signature of endorser + name of endorsee)

Restrictive (endorser by some words restricts rights of endorsee for further endorsements)

Partial (is invalid)

Conditional or Qualified ( endorser limits his liability by putting some condition)

Differences between a Public Company and a Private company

1. Minimum number : The minimum number of persons required to form a public company is 7. It is 2 in case of a private

company.

2. Maximum number : There is no restriction on maximum number of members in a public company, whereas the

maximum number cannot exceed 50 in a private company.

3. Number of directors. A public company must have at least 3 directors whereas a private company must have at least 2

directors (Sec. 252)


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4. Restriction on appointment of directors. In the case of a public company, the directors must file with the Register a

consent to act as directors or sign an undertaking for their qualification shares. The directors of a private company need

not do so (Sec 266)

5. Restriction on invitation to subscribe for shares. A public company invites the general public to subscribe for the shares

or the debentures of the company. A private company by its Articles prohibits invitation to public to subscribe for its

shares.

6. Name of the Company : In a private company, the words Private Limited shall be added at the end of its name.

7. Issue of prospectus : Unlike a public company a private company is not expected to issue a prospectus or file a

statement in lieu of prospectus with the Registrar before allotting shares.

8. Transferability of Shares. In a public company, the shares are freely transferable (Sec. 82). In a private company the

right to transfer shares is restricted by Articles.

9. Quorum. If the Articles of a company do not provide for a larger quorum, 5 members personally present in the case of a

public company are quorum for a meeting of the company. It is 2 in the case of a private company(Sec. 174)

10. Managerial remuneration. Total managerial remuneration in a public company cannot exceed 11 per cent of the net

profits (Sec. 198). No such restriction applies to a private company.

11. Commencement of business. A private company may commence its business immediately after obtaining a certificate

of incorporation. A public company cannot commence its business until it is granted a Certificate of Commencement of

business.


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WTO

Formation: 1st January 1995

Headquaters : Geneva, Switzerland

Membership: 159 member states. (95% of total world trade)

Official Languages: English, French, Spanish

Director-General: Roberto Azevedo (6th DG of WTO appointed on 1st Sept. 2013)

Staff: 630

Principles

Non-Discrimination


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Levels of WTO

Highest Level Second Level Third Level Fourth Level

Ministerial conference

Meet at least every two year

It can make decision on all

matters under any of the

multilateral agreement.

General Council

The dispute settlement body

The trade policy review body

(TPRB)

Council for trade Goods

IPR and Service

Subsidiary bodies

Other committeesTrade and environment

Trade and development

Regional trade agreements

Balance of payments

restriction

Budget, Finance and

Administration etc..

company classification

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