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2. Unlimited companies
E.g.: Jonathan Rose co.,
Wicks Group of companies
Suyog system and Software pvt. Ltd.
Classification on the basis of number of members
Private company
A private company means a company which has a
minimum paid up capital of Rs.1,00,000 or such higher
paid up capital as may be prescribed , and by articles-
(a) restricts the right to transfer its shares, if any. This
restriction Is meant to preserve the private character of the
company
(b) limits the number of its members to 50 not including its
employee-members
( C) prohibits any invitation to the public to subscribe for any
shares in or debentures of the company
(d) prohibits any invitation or acceptance of deposits from
persons other than its members, directors and their relatives
Public company
A public company means a company which
Has a minimum paid up capital of Rs.5 lakh or such high paid-
up capital, as may be prescribed
Classification on the basis of control
Holding company
A company is known as the holding company of
another company if it has control over that other
company.
Subsidiary company
A company is known as a subsidiary of another
company when control is exercised by the latter over
the former called a subsidiary company.
Company controlling composition of Board of Directors
Holding of majority of shares
Subsidiary of another subsidiary
Classification on the basis of ownership
Government company
A Government Company means any company
in which not less than 51% of the paid-up
share capital is held by
The central government or
Any state government or governments or
Partly by the central government and partly by
one or more state governments.
E.g.: State Trading Corporation of India Limited
Minerals and Metals Trading Corporation of India
limited
Non-government company
Foreign companies
MNCS/ TRANSNATIONAL
COMPANY
A multinational corporation is a business
enterprise that retains direct investments
overseas and that maintains value-added
holdings in more than one country. A firm
is not really multinational if it just engages
in overseas trade or as a contractor to
foreign firms
They are also called transnational
companies
BLUE CHIP COMPANIES
A blue chip stock is the stock of a well-
established company having stable earnings
and no extensive liabilities. The term derives
from casino, where blue chips stand for counters
of the highest value. Most blue chip stocks pay
regular dividends, even when business is faring
worse than usual. They are valued by investors
seeking relative safety and stability, though
prices per share are usually high. Typically, such
stocks are perceived to offer reliable returns, low
yield, and low risk.
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