company information:-
Ø COMPANY is an artificial person created by
law with separate name, common seal, perpetual succession, separate legal
entity and allowing transferability of shares.
DEFINITION “ SECTION 2(20) OF COMPANIES ACT 2013 DEFINES A COMPANY AS AN
ASSOCIATION OF MANY PERSONS WHO CONTRIBUTE MONEY OR MANIES WORTH TO A COMMON
STOCK AND EMPLOYEE IN SOME TRADE OR BUSINESS AND WHO SHARE THE PROFIT OR LOSS
ARRISING THERE FIRMS
TYPES OF COMPANY:
FEAT:
FEA
Ø Voluntary association
Ø Large strength
Ø Huge capital
Ø Sharing profits
and loss
Ø Common seal
Ø Legal business
Ø Artificial person
Ø Registration
Ø Separate legal
entity
Ø Limited liability
MERITS AND DEMERITS:-
ü Huge capital
ü Stability
ü Economies of
large scale
ü Government
revenue
ü Bargaining power
ü Difficult formation
ü No flexibility
ü Late decision
making
ü Misusing of
funds
ü Lack of contact
with employee and customer
Public company: - A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets.
·
Minimum shares required 7 and maximum unlimited
·
It allows transferability of shares
·
Minimum share capital 5 lakh
Private company: - A private company is a corporation whose shares of stock are not publicly
traded on the open market but are held internally by a few individuals. ...
Cargill (the food producer) is the largest private company in the U.S. Some other familiar examples of privately held companies n the U.S.
·
Minimum shares required 2 and maximum 200
·
It does not allows the transferability of
shares
·
Minimum paid up capital is 1 lakh
