Professional Documents
Culture Documents
Company
Professor & Lawyer
Puttu Guru Prasad
Senior faculty for
Management Studies- VVIT
Definition of Joint Stock Company
Company means a company formed and
registered under this Act or existing company.
(Company Act, 1994)
A joint stock company is an association of
many persons who contribute money or moneys
worth to a common stock and employ it for a common
purpose. Joint Stock Company is a new venture in
the big business area. After industrial revolution, there
must be changed in the production system.
Definition of Joint Stock Company
Justice Marshall : A company is an artificial
being, invisible, intangible and existing only in
contemplation of law.
1. Formation
2.Number of Members
3. Starting of work
4. Sales of share
5. prospectus
6. Transfer of shares
Differences between Private Limited and
Public Limited Company
Particulars Private Limited Public Limited
7. Size of capital
8. Minimum capital
9. Board of director
10.Statutory meeting
Board of Director
Managing Director
General Manager
Divisional Mgt
Divisional Mgt Divisional Mgt Divisional Mgt
Purchase
Sales HRM Finance
Modes of winding up
There are three methods of winding up a Company :
1.Compulsory winding up by Court.
2.Voluntary winding up by members themselves
or by the creditors .
3.Voluntary winding up under the supervision of
the Court.
Compulsory winding up
Compulsory winding up takes place when a Company is
directed to be wound up by an order of Court
A company may be wound up by the court under the
following circumstances :
1. Special Resolution of the Company
2. Default
3. Not Commencing or Suspending the Company (within
the incorporation )
4. Reduction of members
5. Inability to pay debts
6. The just and equitable clause (incorporation fail ,
exercise power unfairly , illegal business)
Voluntary winding up by members
themselves or by the creditors
Voluntary winding up means winding up by the
members themselves without the intervention of the court . A
company can be wound up voluntarily under the following
cases :
1. By an Ordinary Resolution of the members passed in a
general meeting
Company duration fixed - Expired duration
Any event - event occurred.
2. By a Special Resolution passed by the members in all
other cases. (private cases )
Voluntary winding up under the
supervision of the Court
At any time after a company has passed a
resolution for Voluntary winding up , the court may
make an order that the voluntary winding up shall
continue but subject to supervision of the Court.
The supervision order is usually made for the
protection of the creditors and contributories of the
company.
Thank You