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    Company Law

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    R Balaji
    The document discusses key aspects of company formation and operations under Indian law. It defines a company and outlines its key characteristics such as separate legal entity status, limited liability, transferable shares and perpetual succession. The document also describes the different types of companies and covers the process of company promotion and formation which involves stages like registration, incorporation and commencement of business. It explains important legal documents like the Memorandum of Association, Articles of Association and Prospectus which lay out the objectives and governance structure of a company.

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    Company Law

    Uploaded by

    R Balaji
    10 views12 pages
    The document discusses key aspects of company formation and operations under Indian law. It defines a company and outlines its key characteristics such as separate legal entity status, limited liability, transferable shares and perpetual succession. The document also describes the different types of companies and covers the process of company promotion and formation which involves stages like registration, incorporation and commencement of business. It explains important legal documents like the Memorandum of Association, Articles of Association and Prospectus which lay out the objectives and governance structure of a company.

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    The document discusses key aspects of company formation and operations under Indian law. It defines a company and outlines its key characteristics such as separate legal entity status, limited liability, transferable shares and perpetual succession. The document also describes the different types of companies and covers the process of company promotion and formation which involves stages like registration, incorporation and commencement of business. It explains important legal documents like the Memorandum of Association, Articles of Association and Prospectus which lay out the objectives and governance structure of a company.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    10 views12 pages

    Company Law

    Uploaded by

    R Balaji
    The document discusses key aspects of company formation and operations under Indian law. It defines a company and outlines its key characteristics such as separate legal entity status, limited liability, transferable shares and perpetual succession. The document also describes the different types of companies and covers the process of company promotion and formation which involves stages like registration, incorporation and commencement of business. It explains important legal documents like the Memorandum of Association, Articles of Association and Prospectus which lay out the objectives and governance structure of a company.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    Company Law

    Module- 1
    Corporations and Legal Personality
    Introduction of a Company

    • The word ‘company’ is derived from the Latin word


    (Com=with or together; panis =bread), and it
    originally referred to an association of persons who
    took their meals together.
    • A company is referred to as an association of two or
    more people who contribute money or money’s
    worth to a common fund and use it for a purpose. It
    is an artificial person that exists as a corporate legal
    entity
    Characteristic features of a Company

    1. Corporate Body
    2. Separate Legal Entity
    3. Limited Liability
    4. Transferability of Shares
    5. Common Seal
    6. Perpetual Succession
    7. Number of Members
    Types of Companies
    Promotion & Formation

    Refers to the entire process by which a


    company is brought into existence. The
    persons who conceive the company and
    invest the initial funds are known as the
    promoters of the company.

    The promoters have certain basic duties


    towards the company formed:
    • He must not make any secret profit out
    of the promotion of the company.
    • He must make full disclosure to the
    company
    Steps in Formation of a Company

    1. Promotion stage
    2. Registration stage
    3. Incorporation stage
    4. Commencement of Business stage
    Lifting or Piercing of Corporate Veil
    Memorandum of Association (MOA)

    The Memorandum of Association


    (MOA) is a legal document that
    lays out the framework for the
    establishment of a company.
    • Name Clause
    • Registered Office Clause
    • Object Clause
    • Liability Clause
    • Capital Clause
    • Association Clause
    Objectives in registering MOA

    1. To provide legal status


    2. To define the company's purpose
    3. To protect the interests of shareholders
    4. To facilitate capital raising
    5. To facilitate decision-making
    Articles of Association(AOA)
    • When a company is formed, certain rules and
    regulations are laid down along with the objectives
    of the company’s operations and its purpose.
    • Articles of Association contain the by-laws that
    regulate the operations and functioning of the
    company like the appointment of directors and
    handling of financial records.
    • Issuing of shares 
    • Dividend policy and the transferability of shares
    • The day-to-day operations of the company
    • Special voting rights
    • Valuation of intellectual rights
    Prospectus

    • A prospectus is a legal document that a


    company issues to the public giving details
    of an offer for investment. A company
    prospectus is a legal document that an
    organization issues to the general public
    when launching a new financial product like
    a mutual fund, stocks, or bonds.
    • It is distributed to the general public through
    brokers and underwriters
    • The document contents are as follows:
    1. The types of investment options offered.

    2. The issue date for the offer.

    3. The maturity dates.

    4. It will state the method of interest payment and the denomination of the offer.

    5. It details how the company will utilize the amount raised.

    6. A brief company description.

    7. It shows the company’s financial information and condition.

    8. Its principles, mission, vision, and years in the market.

    9. The management information, experience, and contribution to the business are given.

    10.It gives the name of banks or financial institutions involved in the offering.

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