Tag: types of companies - private & public

According to section 409 of Companies Act, 2013 the President shall be a person who is or has been a Judge of a High Court for five years. The President and every other Member of the Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re – appointment for another term of five years. The president of the NCLT shall hold office until he attains the age of sixty-seven years. A person who has not completed fifty years of age shall not be eligible for appointment as Member. 

According to guidelines of National Company Law Tribunal (NCLT),Every Member shall hold office for a period of five years from the date on which he/she enters upon his/her office, but shall be eligible for re-appointment for another term of 5 years. The term of appointment is, however, subject to the maximum age limit of sixtyfive years. 

Regional directors are present in companies that are organized by location and have their departments under that. They are responsible for the operations for their particular area. The ministry of corporate affairs has appointed seven Regional Directors who are in-charge of the respective regions, each region comprising a number of States and Union Territories. They supervise the working of the offices of the Registrars of Companies and the Official Liquidators working in their regions.

 A public company can start business after getting "trading certificate". Without trading certificate, all the contracts would be considered void in the eyes of law and operations of business cannot be carried out.

It is true. A company must have an underwriter, who helps the companies in introducing their securities to the market. An underwriter is required to sell securities and if he is not able to sell, then underwriter is liable to purchase the unsold shares of the company.

Minimum subscription is not guaranteed by the directors. Minimum subscription refers to the minimum shares the company needs to get subscribed from the general public.

It is not true that shareholders take initiative to form a company. Shareholders are the one who invests in the company and helps in the capital formation of company. Entrepreneur initiates to form a company with the help of Promoters.