A Company, in common parlance, means a group of persons associated together for the attainment of a common end, social or economic.
Nature Of Company And
Formation
A Company, in common parlance, means a group of persons
associated together for the attainment of a common end, social or economic. The Companies Act, 1956 defines the word ‘company’ as a
company formed and registered under the Act or an existing company formed and
registered under any of the previous company laws (Section 3). Section 12
permits the formation of different types of companies. These may be (i)
companies limited by shares, (ii) companies limited by guarantee, and (iii)
unlimited companies. The vast majority of companies in India are with limited
liability by shares. Definition
Of Company: “A Company is a voluntary
association of persons formed for some common purpose with capital
divisible into parts known as shares” The common stock so contributed is
denoted in money and is “the capital” of the company. The persons who
contribute it, or to whom it belongs, are members. The proportion of capital
to which each member is entitled is his “share”. Shares in a company are
transferable.
Tags : Business Environment and Law-Nature Of Company And Formation
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