Industrial revolution has prompted the rise of large-scale business organizations. These organizations require huge ventures and the risk implied is exceptionally high. Restricted assets and limitless responsibility of accomplices are two significant constraints of organizations of partnerships in endeavour huge business. Business entity type Stock Company of business association has become amazingly well known as it gives an answer to conquer the impediments of organization business. The Multinational have their financial backers and clients spread all through the world.
Meaning Of Company
Section 3 (1) (i) of the Companies Act, 1956 characterizes an organization as “an organization framed and enlisted under this Act or a current organization”. Segment 3(1) (ii) Of the demonstration expresses that “a current organization implies an organization shaped and enrolled under any of the past organizations laws”. This definition doesn’t uncover the unmistakable attributes of an organization. As indicated by Chief Justice Marshall of USA, “An organization is an individual, fake, undetectable, elusive, and existing just in the consideration of the law. Being a simple animal of law, it has just those properties which the personality of its production of its creation gives upon it either explicitly or as accidental to its actual presence”. One more thorough and clear meaning of an organization is given by Lord Justice Lindley, “An organization is implied a relationship of numerous people who contribute cash or cash’s worth to a typical stock and utilize it in some exchange or business, and who share the benefit and misfortune emerging there from.
The normal stock contributed is indicated in cash and is the capital of the organization. The people who contribute it, or to whom it has a place, are individuals. The extent of cash-flow to which every part is entitled is his portion. Offers are consistently adaptable albeit the option to move them is regularly pretty much confined”. (3) According to Haney, “Business entity is a deliberate relationship of people for benefit, having a capital isolated into adaptable offers. The responsibility for is the state of participation”. From the above definitions, it very well may be presumed that an organization is enlisted affiliation which is a counterfeit lawful individual, having a free lawful, element with a ceaseless progression, a typical seal for its marks, a typical capital included adaptable offers and conveying restricted responsibility
Characteristics of a company
- Separate legal entity
- Incorporated association
- Artificial person
- Limited liability
- Common seal
- Perpetual succession
- Transferability of shares
Doctrine of the lifting the company veil
- Determination of character or nature of company.
- Benefits or protection of revenue.
- Evasion of personal and statutory obligation/ Prevention of fraud.
- Avoidance of welfare Legislation.
- Diversion of business opportunity.
- Determining Expertise of company
- When company is sham or facade
Statutory provision – According to provision of companies Act
- Reduction of minimum number of members.
- Holding and subsidiary company relationship.
- Investigation of ownership in company.
- Directors with unlimited liability
- Investigation in the affairs of the company.
- Fraudulent Conduct of Business.
- Failure to return Application Money.
- Misrepresentation in prospectus.
- Mis-description of Name.
- Pre-incorporation Contracts.
- Ultra vires Acts.
- Liability under other statutes
Top 20 company Law assignment Topics
- Holdings in company law
- Who can be subscribers in company? minimum number of subscribers in private and public company?
- Diversification and ultra vires in company law
- What is ASBA?
- Equity with differential voting rights in company law
- Underwriters and what is the brokerage they get in company law
- Clause 49 in company law
- Dematerializations of shares help the shareholders in company law
- Buy back of shares in company law
- Role of Registrar in IPO in company law
- Merits and Demerits of Incorporation of company – Lifting the corporate veil.
- Role of promoters, Legal Position of Promoter
- Pre-incorporation contracts
- Memorandum of Association – Meaning, Purpose, Contents, Ultravires and Doctrine of Ultravires
- Articles of Association – Meaning Purpose, Content. Alternation, Constructive Notice.
- Doctrine of Indoment Exceptions
- Modes of acquiring Membership
- Oppression and Mismanagement, Prevention of Oppression and Mismanagement
- Powers of Company Law Board and Government
- Merger and Demerger of Company & Amalgamation, Compromise and Arrangement
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