itft - company law introduction [compatibility mode]

COMPANY LAWUNIT -1 INTRODUCTION

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TopicsØMeaningØDefinition

ØCharacteristicsØCharacteristicsØLifting of Corporate VeilØCompany Vs Partnership

ØKinds of CompanyITFT College

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Meaning of Company

It is an artificial person It is an artificial person having separate entity from having separate entity from its members with perpetual its members with perpetual its members with perpetual its members with perpetual

succession and common seal.succession and common seal.

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Definition of a CompanyAccording to the companies Act 1956, a According to the companies Act 1956, a company means “A company formed and company means “A company formed and

registered under the companies Act 1956 or registered under the companies Act 1956 or an existing company:an existing company:an existing company:an existing company:

[Section 3(1)([Section 3(1)(ii)]. An existing company means a )]. An existing company means a company formed and registered under any company formed and registered under any

of the former Companies Acts.”of the former Companies Acts.”

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Characteristics of a CompanyArtificial PersonalityArtificial PersonalitySeparate Legal EntitySeparate Legal Entity

Voluntary Incorporated AssociationVoluntary Incorporated AssociationVoluntary Incorporated AssociationVoluntary Incorporated AssociationNumber of Members/SubscribersNumber of Members/Subscribers

Perpetual SuccessionPerpetual SuccessionCommon SealCommon Seal

Limited LiabilityLimited Liability

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Characteristics……!!Share CapitalShare Capital

Transferability of SharesTransferability of Shares

Separation of Ownership and Separation of Ownership and Separation of Ownership and Separation of Ownership and

ManagementManagement

A Company is not a CitizenA Company is not a Citizen

Separate PropertySeparate PropertyITFT College 6



Lifting The Corporate VeilLifting The Corporate Veil

Lifting of corporate veil is a fiction Lifting of corporate veil is a fiction of law, which means disregarding of law, which means disregarding

the separate legal entity of a the separate legal entity of a

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the separate legal entity of a the separate legal entity of a company and identifying the company and identifying the realities which lay behind the realities which lay behind the

legal façadelegal façade.



EexceptionalEexceptional cases cases

qqExcess or Violation of Statutory Excess or Violation of Statutory qqExcess or Violation of Statutory Excess or Violation of Statutory Provisions Provisions

qqJudicial Interpretation Judicial Interpretation

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Kinds of companiesKinds of companies

Classification on the basis of Incorporation;

Classification on the basis of Liability;

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Liability; Classification on the basis of

number of members;Classification on the basis of

Control;Classification on the basis of

Ownership



Classification on the basis of Incorporation

1. Chartered Companies1. Chartered Companies2. Statutory Companies2. Statutory Companies

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2. Statutory Companies2. Statutory Companies3. Registered Companies3. Registered Companies

-- Private CompanyPrivate Company-- Public CompanyPublic Company



Classification on the basis of Classification on the basis of LiabilityLiability

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1. Companies having limited liability 1. Companies having limited liability 2. Companies having unlimited liability.2. Companies having unlimited liability.



Classification on the basis of number of members

1. Private company1. Private company2. Public Company2. Public Company

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2. Public Company2. Public Company



Classification on the basis of Control

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1. Holding Companies1. Holding Companies2. Subsidiary Company2. Subsidiary Company



Classification on the basis of Ownership

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1. Government Companies2. Non-government Companies



Questions ?????Questions ?????•• DefineDefine aa companycompany..•• DiscussDiscuss thethe classificationclassification ofof aacompanycompany..companycompany..

•• WhatWhat isis LiftingLifting ofof CorporateCorporate Veil?Veil?•• DiscussDiscuss thethe characteristicscharacteristics ofof aacompanycompany laidlaid underunder thetheCompany’sCompany’s ActAct 19561956.

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itft - company law introduction [compatibility mode]

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