Beruflich Dokumente
Kultur Dokumente
C5 L4 R4 VPS TM
Essential Features (Rearranged)
Contractual Capacity Registration
Capital Registered Office
Common Seal Fundamental Rights
Not a Citizen Residence
Central Administration Voluntary Association
Legal Personality Permanent Existence
Legal/Statutory Obligations Social Objective
Limited Liability Transferability
"Lifting the veil" of the company
Management
Company: A Property of Shareholders?
The traditional view that the company is the property of the
shareholders is now an exploded myth.
According to the new socioeconomic thinking, a company is a social
institution having duties & responsibilities towards the community
in which it functions.
Maximization of social welfare should be the legitimate goal of a
company
Shareholders should not be regarded as proprietors of the company,
but merely as suppliers of capital entitled to no more than
reasonable return
the company should be responsible not only to shareholders but also
to workers, consumers and the other members of the community
and should be guided by considerations of national economy and
progress.
D. Is a Company a Property of the Shareholders?
The traditional view that the company is the property of the shareholders is now an exploded myth. A company according
to the new socioeconomic thinking, is asocial institution having duties and responsibilities towards the community
in which it functions. Maximisation of social welfare should be the legitimate goal of a company and shareholders
should be regarded not as proprietors of the company, but merely as suppliers of capital entitled to no more than
reasonable return and the company should be responsible not only to shareholders but also to workers,
consumers and the other members of the community and should be guided by considerations of national economy
and progress.
E. Types of companies:
There are two types of companies-Public and Private.
a) Private Company:
A private company is one which, by its articles,
I. restrict the right of the members to transfer their shares, if any ;
II. limit the number of its members (not counting its employees) to 50 and
III. Prohibits any invitation to the public to subscribe for any shares in, or debentures of, the Company.
Private companies may be limited by shares or limited by guarantee. There cannot be a private company with unlimited
liability.
b) Public Company:
All companies other than private companies are called public companies .Public companies may be classified into three
types :
1. companies limited by shares,
2. companies limited by guarantee, and
3. unlimited companies.
Statutory Public Company:
Non-Profit Associations:
the Central Government may by licence, permit the omission of the words Limited or
Private Limited in the case of companies which are formed for promoting
commerce, art, science, religion, or any other useful object, and which are non-
profit and non dividend paying organisations (e.g., Chambers of Commerce). The
licence given may be withdrawn, if the company ceases to fulfill the conditions
mentioned in Sec. 25.
G. Jurisdiction of court:
Suits relating to the constitution of a company and its winding up 'are ordinarily dealt
with in the High Court of the area in which the registered office of the company is
situated. Suits of other types (e.g., money suits) by or against the company, where
would try is determined by the rules regarding jurisdiction of courts as laid down in
the Civil Procedure Code.