UNIT I
Introduction to Companies Act 2013
Q1) What do you mean by Company?
A1) A Company is an entity that Incorporated under this Companies 2013 Act or under any previous Company Law Acts.
Q2) What do you mean by Financial year?
A2) Financial Period is the period ending on the 31st day of March every year, whether the company has been incorporated on or after the 1st day of January of a year, the period ending on the 31st day of March of the following year, in respect whereof financial statement of the company or body corporate is made up.
Q3) What is Foreign Company?
A3) Foreign Company means any company or body corporate incorporated outside India which has a place of business in India whether by itself or through an agent, physically or through electronic mode or conducts any business activity in India in any other manner.
Q4) Who is a member?
A4) Member in a company means the subscriber to the memorandum of the company as a member, any person whose name is entered in the register of members of the company or every person that holds shares of the company.
Q5) What is Private Company?
A5) Private Company means a company having (i) minimum paid-up share capital of one lakh rupees (ii) restricts the right to transfer its shares (iii) prohibits any invitation to the public to subscribe for any securities of the company.
Q6) Who is a promoter?
A6) Promoter means a person who has control over the affairs of the company directly or indirectly whether as a shareholder or director whose advice, directions or instructions the Board of Directors of the company is accustomed to act.
Q7) What is a public company?
A7) Public Company means a company which (a) is not a private company (b) has a minimum paid-up share capital of five lakh rupees.
Q8) What is an unlimited company?
A8) Unlimited Company means a company not having any limit on the liability of its members.
Q9) What is a one-person company?
A9) A one-person company (hereinafter referred to as “OPC”) is a private company having only one member and only that member’s name is indicated in the MoA, alongwith the successor to the member, in case of death or incapacity to enter into contracts.
Q10) When is Certificate of Incorporation issued?
A10) On the basis of the documents and information filed with it, the RoC shall register all the documents and information referred to in the register and issue a certificate of incorporation in the prescribed form, to the effect that the proposed company is incorporated under the Act, from the date mentioned in the certificate of incorporation issued. Further, the RoC shall allot to the company a Corporate Identity Number, which shall be the distinct identity for the company and which shall also be included in the certificate.
