2. The Company
o Company basically means a group of persons
associated for any common object such as
business, charity, sports and research etc.
o Legally, Company is an incorporated association
which is an artificial person, having separate
legal entity, with perpetual succession, a
common seal, a common capital comprised of
transferable shares and carrying limited liability.
o Classification is required to define legal
guidelines clearly as per different objectives
and ownership patterns.
3. On the Basis of Incorporation
Statutory Companies:• Incorporated by a special Act of Legislature
•Goals, powers, liabilities and other functional areas
are defined under the special act.
Registered Companies
•Formed and registered with the Registrar of
companies under the Companies Act.
4. On the Basis of Liability
Limited by Shares
• Liability of the shareholders is limited to the extent of amount unpaid
on shares held by them .
• Necessary for these companies to use the word limited after their
name.
Limited by Guarantee
• Liability of the shareholders is limited to the extent of amount
undertaken by them to contribute to the assets of the firm in the
event of winding up .
• It may or may not have share capital.
Unlimited Companies
• No limit on the liability of its shareholders .
• Liability of each member extends to whole amount of the company’s
debts and liabilities.
• It may or may not have share capital.
5. On the basis of Number of Members
Private Companies
• Has minimum paid capital of one lakh rupees or more
• Can have a minimum of 2 and maximum of 50 members
• Has restricted the right to transfer its shares to any other
person
• Prohibits any invitation to general public for the subscription of
its shares or debentures
Public Companies
• Has a minimum paid-up capital of rupees five lakhs or more
• Does not restrict the right to transfer its shares to any other
person
• Can invite general public for the subscription of its shares or
debentures
• Can invite or accept deposits from the public.
6. COMPANIES
Registered Cos.
Statutory Cos.
Cos. Ltd. By shares
Pubic
Public
Private
Cos. Ltd. by Guarantee
Cos with S.
capital
Private
Public
Cos without S.
Capital
Unlimited cos.
Cos with S.
capital
Cos.
Without S.
Capital
Private
Public
Public
Private
Private
7. OTHER KIND OF COMPANIES
Licensed companies or companies not for profit
• Formed for promoting commerce, art, science or other useful object.
•
Does not intend to apply its profit for payment of any dividend to its
members.
One man company or family company
•
One man holds practically the whole of the share capital of a
company
• Few more dummy members (Family members) to meet the statutory
requirement of minimum no of persons.
8. OTHER KIND OF COMPANIES
Foreign companies
•
A company incorporated outside the region of a nation but has a
place of business in the nation [sec. 591(1)].
Government Companies
• Companies in which not less than 51 % of the paid up share capital is
held either by central or state government or both of them jointly.
• All the subsidiary companies of government companies are included
in the list of government companies
9. OTHER KIND OF COMPANIES
Holding company
• Company which holds more than half of the nominal value of share
capital of another company or controls the composition of board of
directors of another company.
Subsidiary Companies
• Company whose more than half of the nominal value of share capital
is held by another company or another company controls the
composition of board of directors of such company.
10. OTHER KIND OF COMPANIES
Holding company
• Company which holds more than half of the nominal value of share
capital of another company or controls the composition of board of
directors of another company.
Subsidiary Companies
• Company whose more than half of the nominal value of share capital
is held by another company or another company controls the
composition of board of directors of such company.
