Advantages And Disadvantages Of A Company

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C. Mis description of Company’s name:- The name of the company is most important. Usage of approved name entitles the company to enter into contracts and make them legally binding. This name should be prior approved under Section 4 and printed under Section 12 of the Act. Thus, if any representative of the company collect bills or sign on behalf of the company, and enter in incorrect particulars of the company, then such persons are to be held personally liable. Similar things happened in the case Hendon vs. Adelman[6] where signatory directors were held personally liable for stating company’s name on a signed cheque as “L R Agencies Ltd” while the original name was “L & R Agencies Ltd.” D. For investigation of ownership of company:- Under …show more content…

• A private company need not have the Certificate of Commencement of business, unlike other companies, to start its operations • Minimum paid up capital required for a private company is only ` 1 lakh • A private company is required to have only two directors and they can be permanent directors. • There need not be an audit committee of the Board of Directors for a private limited company. • It can issue deferred shares with disproportionate voting rights. Details of modifications under the Act can be read from http://www.mca.gov.in/Ministry/pdf/Draft_Notification_24062014_1.pdf Special kinds of Private companies:  One person company: This type of company has been newly introduced in the Companies Act 2013. Section 2(62) quotes ―One Person Company means a company which has only one person as a member. Details of the person will be specified in the Memorandum of Association. The person will be the only member and director of the company. In several European countries and in UK, One Person Company is popular form. However, in India, the concept is

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