Section 269 of the companies act, 1956 provides that in the case of a public company including a private company which is a subsidiary of the public company, the appointment of a managing director shall not have effect…
The provisions of the Companies Act apply to public and private companies alike. But certain provisions of the companies Act do not apply to a private company but are applicable to public companies. These may be regarded as the privileges or advantages of private company which are as under:
A public company means a company which is not a private company. There must be at least seven people to form a public company.
Section 41 of the companies act 1956, defines a member as a person who has signed the memorandum of association and every other person who agrees in writing to become a member and whose name is entered in the register of members…
A prospectus is usually a circular or newspaper advertisement published by the promoters after the formation of the company to induce the pubic to take shares in the company. The invitation must be to the public…
‘Articles’ means the articles of association of a company as originally framed or as altered from time to time in pursuance of any previous companies law of this act. The articles of association are the rules and regulations of…
Before a company can be formed, there must be some persons who have an intention to form a company and who take the necessary steps to carry that intention into operation. Such persons are called ‘promoters’…
A company comes into existence when a number of persons come together with a view to exploit some business opportunity. These persons are called promoters. Under section 12, any seven or more persons may form an incorporated company…
A private company means a company which by its articles restricts the right to transfer its shares, Limits the number of its member to fifty (excluding members who are or were in the employment of the company)…
The word company ordinarily means an association of a number of individuals formed for some common object. When such an association is registered under the Companies Act, it becomes an artificial person…