Tag: types of companies - private & public

The public company has to take approval of SEBI, if public offers for shares exceeds 3 crores according to the companies act. 

Under the Companies Act 2013, minimum 7 members are required to start a public company. 

The Companies Act 1956 is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Act is 658 sections long. The Act contains provisions about Companies, directors of the companies, memorandum and articles of associations, etc. This act states and discusses every single provision requires or may need to govern a company. However, some of the provisions are now amended as per the Companies Act, 2013.

This statements is False because of the following reasons:

Articles of Association is a document which prescribes the rules and bye-laws for the general management of the company and for the attainment of its object as given in the memorandum .It is a document of paramount significance in the life of a company as it contains the regulations for the internal administration of the company’s affairs.

The second clause of the MOA, the 'situation clause' or ‘domicile’ clause specifies the location of the company’s registered office. The domicile clause will not exactly contain the address of the registered office, but the state or union territory in which the registered office of the company is located. Registered office means a place where the common seal, statutory books etc., of the company are kept.The company should intimate the location of registered office to the registrar within thirty days from the date of incorporation or commencement of business.

Table A is the name given to the prescribed format for articles of association of a company limited by shares under the Companies Act 1985 and earlier legislation. When a company limited by shares was incorporated, it didn’t need to file articles if it used ‘Table A’ as its articles.  Table A has now been replaced by the new model articles for all companies registered from 1st. October 2009. Existing companies will still be regulated by their existing articles, based on the version of Table A in force when the company was registered or the latest articles adopted. Such companies may find it beneficial to update their articles by adopting new regulations based on  model articles.

Regulation in the schedule 1 of the companies act 1956 is the table A. These are the regulations for the management of a company limited by shares. There is full information of the company in the 99 models of table A about the shares, meetings, board of directors, profit, dividend, capitalization, reserve, winding up, indemnity etc.

In a private funded companies the shareholders of the company are individuals. They can own the shares individually. But in a public limited company the shares of the company are owned by the government of that state and not individually. Hence, state-owned enterprises differ from privately funded companies because public companies can never belong to individual shareholders.

Public enterprise  are the enterprise where the share of the government is 51% or more. It works basically for the welfare of the people. Gas authority of India Ltd. is owned by the government and works for the welfare of the people. Hence, it is a public enterprise.