Company Law and Business Organization

For the purpose of advising the Central Government and the Company Law Board on such matters arising out of the administration of this Act as may be referred to it by that Government or Board, the Central Government, may constitute an 'Advisory Committee' consisting of not more than five persons with suitable qualifications.

According to the policy of 1991 the role of public sector was limited only to four industries; rest all the industries were opened for private sector also. Privatization refers to giving greater role to private sector and reducing the role of public sector. 

To execute policy of privatization government took the following steps:(a) Disinvestment of public sector, i.e., transfer of public sector enterprise to private sector (b) Setting up of Board of Industrial and Financial Reconstruction (BIFR). 

This board was set up to revive sick units in public sector enterprises suffering loss. (c) Dilution of Stake of the Government. If in the process of disinvestment private sector acquires more than 51% shares then it results in transfer of ownership and management to the private sector.

In accordance with the section 152(5) of the companies act 2013, a person appointed as a director of any company shall not act as a director unless he gives his consent to hold the office as director and such consent has been filed with the Registrar within 30 days of his appointment.

Section 44 of the Companies Act 2013: Nature of Shares or Debentures. The shares or debentures or other interest of any member in a company shall be movable property transferable in the manner provided by the articles of the company.

The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid up capital of Rs.1 lakh. 

464 says "Provided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred." i.e. by rules limit can be prescribed, but whatever limit is prescribed it must not be greater than 100 (i.e. upto 100). And, the limit prescribed is 50 as per rules. Hence, current limit is 50 for a private company. 

Board meetings are normally held during business hours and on a day, which is not a public holiday. However, a Board meeting may validly be held on public holiday. Department has clarified vide Letter No. 8/11(285)/63-PR, dated 2-5- 1963 that it would not raise any objection if an original Board meeting is not held on a working day for the convenience of the directors although it states that an original Board Meeting should be held on a working day.  Board meetings can be held during non-business hours also. There is no restriction that only business hours have to be used. A company’s registered office or head office or any other campus can be used to have the meeting, irrespective of the fact whether or not it is within the same city, town, village or state which houses the registered office. Meetings can also take place in another country. Participation of the directors by video conferencing or by other audio visual means shall also be valid.

There is no limit on maximum numbers of members in case of public companies (in India).

According to section 149(1) of companies act 2013, a private company can appoint minimum 2 directors and maximum 15 directors.

This appears to be a True/False question about organizational structure. Departments under a ministry are typically under its direct supervision and control, making the statement True.

Departmental undertakings are established as departments of the ministry and are considered part or an extension of the ministry itself. 

This appears to be a True/False question about organizational processes. The principle that actions should follow proper channels of authority is a standard administrative practice, making the statement True.

This appears to be a True/False question about organizational undertakings. Departmental undertakings are often criticized for being rigid and bureaucratic, potentially failing to provide flexibility. The statement is marked True.

The revenue earned by the departmental undertakings goes directly to the treasury and hence is a source of income for the government. 

The departmental undertaking is the oldest and traditional form of an organization of the public sector enterprise.It is organized, financed and controlled in such a manner that any other government organization. The undertaking is under the control of a minister who is responsible to the parliament.

The employees or heads of departments of departmental undertakings are not allowed to take independent decisions without the approval of the ministry concerned which leads to delays in matters where prompt decisions are required. 

This appears to be a True/False question about organizational performance. The statement claims these organizations usually fail to provide adequate services to consumers. The answer is marked True, reflecting a critical perspective.

The departmental undertaking is the oldest and traditional form of an organization of the public sector enterprise.It is organized, financed and controlled in such a manner that any other government organization. 

A departmental undertaking is organized self- contained but it is under the overall control of the departmental head and the ministry concerned. It is a very old and traditional form of public enterprise. It may be organized as a separate full-fledged ministry.

A company whose shares are publicly traded and are usually held by a large number (hundreds or thousands) of shareholders. 

The departmental undertaking is the oldest and traditional form of an organization of the public sector enterprise. It is organized, financed and controlled in such a manner that any other government organization. The undertaking is under the control of a minister who is responsible to the parliament.

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 and. Conducts any business activity in India in any other manner.

Also referred to as face value or par value, nominal value is the value shown on the face of a security certificate or instrument, including currency. The concept most commonly applies to stocks and bonds but is especially important to bond and preferred stock investors.Every share has a nominal (or par) value. It may be a £1 share or a 10p share, or whatever. The nominal value is usually expressed in sterling, but can be in any currency. A company may not issue any share at a discount, i.e. may not sell it for less than its nominal value: CA 2006, sec580.

Liability Clause. The fourth clause of MOA, the liability clause declares the liability of members of the company to be either limited or unlimited.However, in case of a limited company, the liability of directors or managers of a company may be unlimited, if specified in the memorandum.

Formality also means the conditions which must be observed in making contracts, and the words which the law gives to be used in order to render them valid. It also signifies the conditions which the law requires to make regular proceedings.