1. KINDS OF COMAPANIES

2. DEFINITION OF COMPANY
According to Companies Act ,” a company formed and registered under this Act or an existing companies”.
According to Chief Justice Marshall ,“ a company is a person , artificial , invisible , intangible and existing only in the contemplation of law. Being a mere creation of Law,it possesses only those properties which the character of its creation confers upon it either expressly or as incidental to its very existence”.

3. Kinds of Companies Incorporated Unincorporated Charted company
Statutory company
Registered company
Companies limited by shares
Companies limited by guarantee
Unlimited companies
Public
Private
Private
Public
Public
Private

4. CHARTERED COMPANIES A Monarch or King brings in such a company.
In earlier times, trading co. were created by the charter.
Provision of companies act 1956 do not apply.
These types of companies do not exist in India.

5. Examples of Chartered Companies
Royal African Company (1672)
Greenland Company (1693)
South Sea Company (1711)
British North Borneo Company (1881)
Royal Niger Company (1886)
Spanish Company (1577)
Eastland Company (1579)
Turkey Company (1581)
Morocco Company (1588)
East India Company (1600)
German New Guinea Company (1884)
German East Africa Company (1884)

6. STATUTORY COMPANIES
Incorporated by means of a special Act of parliament or any state legislature.
Carries out special public undertakings.
These are governed by act creating them.
Examples : Food Corp. of India , Life insurance of India , JKSRTC , JK Industries.

7. REGISTERED COMPANIES
Companies registered under companies Act, 1956 or existing companies.
Sec 12(2) provides the co. registered under this act may be:-
Companies limited by shares.
Companies limited by guarantee.
Unlimited companies.

8. COMPANIES LIMITED BY SHARES
Majority of registered Cos are limited by shares.
Such Cos must have share capital.
Liability of its members is limited to the amount of unpaid shares held by them.
There is no liability when shares are fully paid.

9. COMPANIES LIMITED BY GUARANTEE
Liability of members is limited to such amounts as they may respectively undertake by memorandum to contribute to the assets of the company.
May or may not have share capital.
If it has share capital, the liability of members is two fold.
Liability to pay the share amount
The amount guaranteed

10. UNLIMITED COMPANIES Liability of members is unlimited.
Company may or may not have share capital.
Such companies are rarely formed.
These Cos must not incorporate “ltd.” word as the last word.
It must file the articles and memorandum.
An unlimited company can get itself re-registered as a limited liability company under section 32 of the Act .

11. PRIVATE COMPANIES
Private Limited Company means a company formed with the word `private’ in its name. The Articles of Association of such companies includes the following restrictions :-
articles of association restricts the right to transfer its shares
limitation to the number of shareholders to 50 (excluding employees and former employees)
prohibition towards invitation to the public to subscribe to shares and debentures [Section 3(1)(iii)
The minimum paid up capital for a private company would be Rs. 100,000.

12. EXAMPLES Acer India Private Ltd. Examples from J&K
  L’Oreal India private Ltd.
Examples from J&K
J & K Metal wires Private Ltd.
        Kashmir tourist bus service Private Ltd.
  NITCO Roadways Private Ltd.
      Chinar Biscuits Private Ltd.
JAY KAY Automobiles Private Ltd.
        Delight fast food Private Ltd.
J & K Vehicleades Private Ltd.
J K Associates Private Ltd.

13. PUBLIC COMPANIES A company which is not a Private company.
The minimum paid up capital for a public company would be Rs. 500,000.
At least 7 persons are required to form a public company.
Only the shares of public companies are capable of being dealt in stock exchange.

14. EXAMPLES

15. PUBLIC VS. PRIVATE COMPANIES
Basis
Public
Private
Min. paid up capital
5 lakh
1 lakh
Min. of members 7 2
Max. of mem.
No limit 50
Restriction On name
Ltd.
(P) ltd.
Commencement of business
A public co. shall not commence its buss.unless it has been granted certificate of commencement of business
A Pvt. Co. can commence its business as soon as it is incorporated
Invitation to public
A public co. may invite public to subscribe to its shares by issuing prospectus.
A Pvt.co.cannot extend such invitation to the public
Transferability of shares
No restriction on the transferability in case of public ltd. Co.
A Pvt. Co. by its articles must restrict the right to its members to transfer its shares

16. Basis Public Private Share warrants
A public co. can issue share warrants
Such a right is denied to Pvt. Co.
Issue of capital
A public co. proposing issue of shares must offers them to existing members
A Pvt. Co is free to allot new issue to outsiders
No. of directors
A public co. must have at least 3 directors
A Pvt. Co. may have 2 directors
Statuary meetings
A public co. must hold statuary meeting& file with the registrar a statuary report.
A Pvt. Co. has no such obligation
Quorum
If the articles of the co. do not otherwise provide the quorum is 5mem. Personally present in the case of public co
The quorum of the of the Pvt. co. is 2 members Personally present
Restriction on the appointment of directors
A director of A public co. shall file with a registrar consent or act as such..He shall sign Memorandum and enter into contract for qualification shares . He cannot take part in the discussion on a contract in which he is interested.
These restriction do not apply to a Pvt. Co.

17. GOVERNMENT COMPANIES
Government Companies means any company in which more than 51% of the paid up share capital is held by the Central Government or any State Government or partly by the Central Government and partly by the one or more State Governments and includes a company which is a subsidiary of a government company.
Government Companies are also governed by the provisions of the Companies Act.

18. EXAMPLES Jammu & Kashmir State Agro Industries Ltd.
Jammu & Kashmir Bank Ltd.
Jammu & Kashmir Tourism development corpn Ltd.
Jammu and Kashmir Cement Ltd.
J&K Industrial & Technical Consultancy Organisation Ltd.

19. HOLDING AND SUBSIDIARY COMPANIES
A company which controls other company is known as the holding company and the company so controlled is termed as subsidiary company.
Section 4 of the companies act, 1956, provides that a holding company is one if it :
Controls the board of directors of another company;or
Holds more than half of the nominal value of equity share capital of another company ; or
Is a subsidiary of any company which is in turn a subsidiary of another company.

20. EXAMPLES Ø HOLDING COMPANY Indian Oil Corporation Ltd. SUBSIDIARIES
        Indian Oil Technology Ltd.
       Indian Oil (Mauritius) Ltd.
      IBP Co Ltd.
        Indian Oil Blending Ltd. 
HOLDING COMPANY
Acer Co. Ltd
SUBSIDIARIES 
·        Acer India private Ltd.
·        Acer computer Australia. Pvt Ltd.
·        Acer Computer (Singapore) Pvt Ltd
·        Acer Computer Co., Ltd.
·        And many more 

21. FOREIGN COMPANIES
Company incorporated outside INDIA and having a place of business in India.
According to section 591, a foreign company is one incorporated outside India
a) which established a place of business within the India after the commencement of this act.
b) which had a place of business within India before the commencement of this act and continues to have the same at the commencement of this act.

22. COMPANIES CONVERTED FROM PUBLIC LIMITED TO PRIVATE     COMPANIES CONVERTED FROM PUBLIC TO PRIVATE
Name of the Company
Date of Conversion
NITCO ROADWAYS LTD.
Friday, June 15, 2001
NEW STYLE FABRICATORS LTD
Friday, April 19, 2002
TRANS ASIA HOTELS PVT LTD
Wednesday, December 20, 2000
T.R.G. INDUSTRIES PRIVATE LTD
Wednesday, April 04, 2001
P.B.I. (INDIA) LIMITED
Wednesday, June 07, 2000
GANESH OIL MILLS LIMITED
Thursday, September 27, 2001
APEXCEL LIMITED
Friday, March 28, 2003
PATHANKOT VEHICLEADES PVT.LTD.
Monday, March 11, 2002
KASHMIR FINANCE LIMITED
Thursday, January 22, 2004
                                                         

23. COMPANIES CONVERTED FROM PRIVATE TO PUBLIC LIMITED
Name of the Company
Date of Conversion
JAY KAY REAL ESTATES PRIVATE LIMITED
Wednesday,
September 05, 2001
SHEEN ROADLINKS PVT.LTD.
Friday,
March 05, 1999
DUTTA FINANCIERS (INDIA) PVT.LTD.
July 25, 2001
SHIROMANI FINANCE PVT LTD
Tuesday,
February 12, 2002
GTZ SECURITIES LIMITED
March 10, 2000
SRF INTERNATIONAL PRIVATE LIMITED
Monday,
March 24, 2003

24. THANK YOU