Company law in india
The term company is used to describe an association of a number of person , formed for some common purpose and registered according to the law relating to companies. It is a juristic person having a separate legal entity distinct from the members who constitute it. Company is limited by shares in which the capital is of fixed amount divided into member of shares and in which the liability of the members do not exceed the face value of his share.” Share is the interest of a shareholder in the company measured by a sum of money.
There are of two kinds of company
• Private Company ( 2 or more persons)
• Public Company ( atleast 7 members)
The essentials of being a company under Indian company law implies registration under the Companies Act , association of many persons on a voluntary basis, has a legal personality. It has a management , registered office , capital, statutory responsibility.
The documentary requirements includes The Memorandum of Association. . It is the principal document of the company and no company can be registered without the memorandum of association. It defines the scope of the company’s activities. The memorandum of association contains the following clauses Name, object, registered office, liability, capital clause.
The rules and regulations which are framed of the internal management of the company are set out in a document named Articles of Association. The memorandum and articles shall be filed with the Registrar who if satisfied that the requirements of this Act have been complied with shall retain and register them within thirty days from the date of their receipt and in the event of refusal he shall communicate the grounds within ten days after that period to the company. An person on being aggrieved by a refusal of the Registrar under sub-section (1) may make an appeal to the Government within thirty days of the receipt of the refusal order The decision of the Government in an appeal under this section shall be final. After the receipt of certificate of incorporation, if the promoters of a public limited company wishes to issue shares to the public, he will issue a document called prospectus. It is an invitation to the public to subscribe to the share capital of the company. a company comes to an end by the process of Winding up. It is a legal process by which the life of a company is put to an end. In the course of winding up the assets of the company are realized by converting them into money, and the same is then applied for the satisfaction of debts, the balance being returned to the share – holders. The share – holders do not get anything until the creditors are fully paid.