2. CONTENTS COVERED UNDER THIS TOPIC :
Introduction to companies act
Definition to the company.
Nature of the companies
Types of the companies
Characteristics of companies
Conclusion
3. INTRODUCTION
• There are tremendous changes in new provisions under the
companies act 2013 with respect to AUDITORS and
COMPANIES as compared to the old companies act
1956.The new act intends to improve corporate governance
and to further strengthen regulations.
4. DEFINITION :-
• The word COMPANY is derived from the latin word COM which means TOGETHER and PANIES –
another latin word meaning BREAD.
• According to section 2(20) of companies act 2013,defines a company as a company
incorporated under this companies act or under any previous law.
• According to Lindley .L.J. defines a “company as an association of many persons who
contributed money or money’s worth to a common stock and employ it in some common trade
or business and who share profit or loss arising there from” .
• A company is an artificial person created by law having separate identity and perpetual
succession
5. NATURE OF COMPANIES :-
A company has a dual nature as an association of its members but also as a person separate from
its members
As soon as necessary formalities of incorporation are satisfied , a new entity comes into existence .
The new entity which comes in to existence is separate and distinct from its directors and share
holders
11. CHARACTERISTICS OF COMPANIES
1.Perpetual succession:- A company is distinct and separate from its members who may
die or change without effecting its continuous existence until it is wound up on the
grounds and in the manner as specified by the act.
2. Separate entity :- A company can own property having bank account ,raise loans ,incur
liabilities and enter in to contracts . Even members can enter contract with the company
acquire rights against it and incur liabilities to it.
3.Limited liability :- For the debts of the company the creditors can sue it and not its
members whose liability is limited to the unpaid amount on shares and the shares held by
them or the guarantee provided by them to contribute on the winding up of the company
depending on the type of the company.
4.Common seal :- Every company has a common seal which is affixed on the documents
and the contracts in order to authenticate its formal acts.
5.Capacity to sue :- A company can be and be sued in its corporate name ,it may inflict or
suffer wrongs .it can infact do or have done to it most of thing which may be done by or
a human being
6.Artificial person :- As a company is an artificial person , it can act only through some
human agency i.e, members and directors .the directors are responsible for the
12. From the whole topic of the nature and type of companies ,finally I concluded that is as follows
:-
There are different types of companies existing in India such as :
1.On the basis of incorporation
2.On the basis of liability
3.On the basis of number of members
4.On the basis of control
5.On the basis of ownership
By compliance of the existing rules and regulations ,a company can successfully form and
operate their business in the society .
13. REFERENCES:-
Http : // economic times .India times .Com
N.D. Kapoor, company law, sulthan chand &sons
S.C.Agrwal,company law,dhanpat rai
publications
