Formation of company
CORPORATE ENVIRONMENT
Unit 1
FORMATION OF COMPANY
Promotion of Company – Promotion – Incorporation – Capital Subscription and Certificate of
Commencement of Business. Memorandum of Association – Definition – Clauses. Articles of
Association – Definition – Contents – Distinction between Memorandum of Association and
Articles of Association – Alteration of Memorandum of Association and Articles of Association.
Prospectus – Meaning – Contents – Statement in Lieu of Prospectus.
INTRODUCTION
Industrial has revolution led to the emergence of large scale business organizations. These organization require big investments and the risk involved is very high. Limited resources and unlimited liability of partners are two important limitations of partnerships of partnerships in undertaking big business. Joint
Stock Company form of business organization has become extremely popular as it provides a solution to overcome the limitations of partnership business. The Multinational companies like Coca-Cola and,
General Motors have their investors and customers spread throughout the world. The giant Indian
Companies may include the names like Reliance, Talco Bajaj Auto, Infosys Technologies, Hindustan
Lever Ltd., Ranbaxy Laboratories Ltd., and Larsen and Tubro etc.
Company law is that branch of law which deals exclusively with all aspects relating to companies, such as incorporations of companies allotment of shares and share capital membership in companies management and administration of companies, winding up of companies. etc. Company law in India is that branch of
Indian law which regulates companies in India.
LEGISLATIVE BACKDROP OF COMPANIES ACT / HISTORY OF INDIAN COMPANY LAW
Joint stock companies act of 1850: Companies legislation in India owes its origin to the English
Company law. The companies acts passed from time to time in India have been following the English companies acts with certain modifications to suit Indian conditions. The first
Unit 1
FORMATION OF COMPANY
Promotion of Company – Promotion – Incorporation – Capital Subscription and Certificate of
Commencement of Business. Memorandum of Association – Definition – Clauses. Articles of
Association – Definition – Contents – Distinction between Memorandum of Association and
Articles of Association – Alteration of Memorandum of Association and Articles of Association.
Prospectus – Meaning – Contents – Statement in Lieu of Prospectus.
INTRODUCTION
Industrial has revolution led to the emergence of large scale business organizations. These organization require big investments and the risk involved is very high. Limited resources and unlimited liability of partners are two important limitations of partnerships of partnerships in undertaking big business. Joint
Stock Company form of business organization has become extremely popular as it provides a solution to overcome the limitations of partnership business. The Multinational companies like Coca-Cola and,
General Motors have their investors and customers spread throughout the world. The giant Indian
Companies may include the names like Reliance, Talco Bajaj Auto, Infosys Technologies, Hindustan
Lever Ltd., Ranbaxy Laboratories Ltd., and Larsen and Tubro etc.
Company law is that branch of law which deals exclusively with all aspects relating to companies, such as incorporations of companies allotment of shares and share capital membership in companies management and administration of companies, winding up of companies. etc. Company law in India is that branch of
Indian law which regulates companies in India.
LEGISLATIVE BACKDROP OF COMPANIES ACT / HISTORY OF INDIAN COMPANY LAW
Joint stock companies act of 1850: Companies legislation in India owes its origin to the English
Company law. The companies acts passed from time to time in India have been following the English companies acts with certain modifications to suit Indian conditions. The first
Links: Link of Ministry of Corporate Affairs (MCA) website: www.mca.gov.in Link of Securities and Exchange Board of India (SEBI): http://www.sebi.gov.in/sebiweb/ Link of Competition Commission of India (CCI) website: www.cci.gov.in ICSI Knowledge Portal: http://knowledge.icsi.edu/ and http://elearning.icsi.edu/ Business knowledge resources online: http://business.gov.in 59 Compiled from various sources by Mahua Adak Mandal / mahuaadak@gmail.com