Company Law Presentation

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SUBMITTED BY -

Bhuvneshwari Rathore
SAP ID- 81012019491
BATCH- 2020=2025
SEMESTER- Vth

Types of
Companies
SUBJECT-Company law
SUBMITTED TO - Prof. Manika Sharma
Company
Companies on the Basis of Liabilities
a) Companies Limited by Shares
b) Companies Limited by Guarantee
c) Unlimited Companies.
Companies on the basis of members
a) Private Companies

Table of b)Public Companies


c)One Person Companies (OPC)
d)Small companies

Contents
Companies on the basis of Control or Holding
' a)Associate Companies
b)Holding and Subsidiary Companies
Classification on the basis of incorportion
a) Chartered Companies
b)Statutory Companies
c) Registered Companies
Other Types of Companies
a) Government companies
b)Foreign Companies
c) Charitable Companies
d) Dormant Companies
e)Nidhi Companies
f)Public finanicial institutions
Conclusion
Company
Under the Companies Act 2013,
a "company" means a company
incorporated under this act or
any previous company law
Section 2 (20)
Companies
on the Basis
of Liabilities
a) Companies b) Companies
Limited by Limited by c) Unlimited
Shares Guarantee Companies

It is defined under Section 2 It is defined under Section 2


It is defined under Section 2 (21). In some companies, the (92) of the Company Act 2013
(22) of the Companies Act memorandum of association Unlimited companies have
2013 Sometimes, mentions amounts of money no limits on their members’
shareholders of some that some members liabilities. Hence, the
companies might not pay guarantee to pay. company can use all
the entire value of their In case of winding up, they personal assets of
shares in one go. In these will be liable only to pay shareholders to meet its
companies, the liabilities of only the amount so debts while winding up.
members is limited to the guaranteed. The company or Their liabilities will extend to
extent of the amount not its creditors cannot compel the company’s entire debt.
paid by them on their them to pay any more
shares. money.
Companies on the basis
of members
According to Section 2 (68)means a company having

a) Private a minimum paid-up share capital of one lakh


rupees or such higher paid-up share capital as may

Companies
be prescribed, and which by its articles,—
(i) Restricts the right to transfer its shares;
(ii) Except in case of One Person Company, limits
the number of its members to two hundred:
(iii) Prohibits any invitation to the public to
subscribe for any securities of the company;

FEATURES

1. Must necessarily have its own Articles of


Association.
2. Should have at least two directors.
3. The word 'Private Limited' must be added at the
end of its name.
According to Section 2 (71) means a company
b) Public which—

Companies (a) is not a private company;


(b) has a minimum paid-up share capital of five
lakh rupees or such higher paid-up capital,as
may be prescribed:
Provided that a company which is a subsidiary
of a company, not being a private company,
shall be deemed to be public company for the
purposes of this Act even where such subsidiary
company continues to be a private company in
its articles.
c) One These kinds of companies have only
Person one member as their sole
shareholder.
Companies They are separate from sole
(OPC) proprietorships because OPCs are
legal entities distinct from their sole
members.
Unlike other companies, OPCs don’t
need to have any minimum share
capital.
"Small company’’ means a company, other than
a public company, it is defined under section 2
d) Small (85) of the Companies Act 2013.
(i) paid-up share capital of which does not
Companies exceed 50 lakh rupees or such higher amount
as may be prescribed which shall not be more
than 5 crore rupees; or
(ii) turnover of which as per its last profit and
loss account does not exceed 2 crore rupees or
such higher amount as may be prescribed which
shall not be more than 20 crore rupees:
Provided that it shall not apply to:
Holding/subsidiary co.
A company regd. Under Sec 8 (associations
not for profit)A co. governed by any special
act.
Companies on the Holding and
basis of Control or Subsidiary
Holding Companies

Holding company:
Associate Companies “ a company is known as the

A company is considered to be
holding company of another
company if it has control over
an associate company of the
that other company
other, if the other company has
Subsidiary company:
significant influence over such
company (not being a A company is deemed to be a
subsidiary) or is a joint venture subsidiary of another company
company. in the following 3 cases-(i)
Significant influence means company controlling the
control of at least 20 %of total composition of BoD
share capital of a company or of (ii) Holding of majority shares
business decisions under an (iii) subsidiary of another subsidiary
agreement
Classification Chartered Companies
on the basis of These Companies can also be called sovereign
companies, which were incorporated before the
incorportaion Independence.

Statutory Companies
Statutory companies are constituted by a special act
of the parliament or a state legislature. The
provisions mentioned in the Companies Act, 2013 do
not apply to them. For Eg- the RBI bank of India

Registered Companies
Companies registered and incorporated under the
Companies Act 2013 or any other previous
companies act are called registered companies..
Other Types of Back to Agenda Page

Companies
Government
Companies

Charitable
Foreign
Companies
Companies (Section 8)

Dormant Nidhi Public Financial


Companies Companies Insitituions
a) Government
Companies
Government companies are those in
which more than 50% of share capital
is held by either the central
government, or by one or more state
government, or jointly by the central
government and one or more state
government.
b) Foreign
Companies
Foreign companies are
incorporated outside India. They
also conduct business in India
using a place of business either
by themselves or with some
other company.
c) Charitable
Companies
(Section 8)
Certain companies have charitable
purposes as their objectives. These
companies are called Section 8
companies because they are
registered under Section 8 of
Companies Act, 2013.
Charitable companies have the
promotion of arts, science, culture,
religion, education, sports, trade,
commerce, etc. as their objectives.
Since they do not earn profits, they
also do not pay any dividend to their
members.
d) Dormant
Companies
These companies are generally
formed for future projects.
They do not have significant
accounting transactions and do
not have to carry out all
compliances of regular
companies.
e) Nidhi
Companies
A Nidhi company functions to
promote the habits of thrift
and saving amongst its
members. It receives deposits
from members and uses them
for their own benefits.
f) Public
Financial
Institutions
Life Insurance Corporation, Unit
Trust of India and other such
companies are treated as public
financial institutions. They are
essentially government
companies that conduct
functions of public financing.
Conclusion
In a nutshell, the different types of companies under the Companies Act 2013 are

based on several factors, such as Independence, Financial Conduct, Liability,

Domicile, etc.

Back to Agenda Page

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