Wednesday, December 5, 2012

Just Finance

Some one said that "A company is an artificial person created by law having seperate entity with a  perpetual succession and common seal."

A company can be described as an organization consisting of many persons called shareholders. The capital of a company is divided into different shares and the holders of these shares are known as shareholders. The shareolders are authorized  by law to elect a board of directors and through it to act as one legal person in regard to its business. The liability of the shareholder is limited.

Characteristics of a company:
  • Artificial person created by law
  •  Capital
  • Limited liability
  • Perpetual Succession
  • Common seal
  • Representative Management
  • Transfer of Shares
  • Maintenance of Books
Types of Companies

1. On the basis of formation
  • Chartered Company
  • Statutory Company
  • Registered Company
2. On the basis of liability
  • Limited liability company
  • unlimited liability company
3. On the basis of number of members
  • Public company
  • Private company
4. On the basis of ownership
  • Government company
  • Non-Government company
5. On the basis of domicile
  • Inland company
  • Foreign company





No comments: