indian companies act 1956 http

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INDIAN COMPANIES ACT 1956

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The incorporation of Indian Company is governed by the Companies Act 1956. The Companies

Act is an Act to consolidate and amend the law relating to companies and certain other

associations. It extends to the whole of India. Chapters I and II deal with the incorporation of a

company and matters matters incidental thereto.

PRIVATE COMPANY/PUBLIC COMPANY

Private company means a company which has a minimum paid-up capital of one lakh rupees or

such higher paid-up capital as may be prescribed, and by its articles,

1. restricts the rights to transfer its shares, if any;

2. limits the number of its members to fifty not including-

(i) persons who are in the employment of the company, and

(ii) persons who, having been formerly in the employment of the company, were members

of the company while in that employment and have continued to be members after the

employment ceased; and

3. prohibits any invitation to the public to subscribe for any shares in, or debentures of, the

company;

4. prohibits any invitation or acceptance of deposits from persons other than its member,

directors or their relatives;

Provided that where two or more persons hold one or more shares in a company jointly, they

shall, for the purposes of this definitions, be treated as a single member;

Public company means a company which-

1. is not a private company;

2. has a minimum paid-up capital of five lakh rupees or such higher paid-up capital, as may

be prescribed;

3. is a private company which is a subsidiary of a company which is not a private company.

i. Every private company, existing on the commencement of the Companies

(Amendment) Act, 2000, with a paid-up capital of less than one lakh rupees, shall,

within a period of two years from such commencement, enhance its paid-capital to

one lakh rupees.

ii. Every private company, existing on the commencement of the Companies

(Amendment) Act, 2000, with a paid-up capital of less than five lakh rupees, shall,

within a period of two years from such commencement, enhance its paid-capital to

five lakh rupees.iii. Where a private company or a public company fails to enhance its paid-up capital

in the manner specified in sub-section (3) or sub-section (4), such company shall

be deemed to be a defunct company within the meaning of section 560 and its

name shall be struck off from the register by the Registrar.

iv. A company registered under section 25 before or after the commencement

ofCompanies (Amendment) Act, 2000 shall not be required to have minimum

paid-up capital specified in this section.

The Companies Act, 1956

11. Prohibition of associations and partnerships exceeding certain number.
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(1) No company, association or partnership consisting of more than ten persons shallbe formed for the purpose of carrying on the business of banking, unless it isregistered as a company under this Act, or is formed in pursuance of some otherIndian Law.

(2) No company, association or partnership consisting of more than twenty personsshall be formed for the purpose of carrying on any other business that has for itsobject the acquisition of gain by the company, association or partnership or by theindividual members thereof, unless it is registered as a company under this Act, or isformed in pursuance of some other Indian law.

(3) This section shall not apply to a joint family as such carrying on a business; andwhere a business is carried on by two or more joint families, in computing thenumber of persons for the purposes of sub-sections (1) and (2), minor members ofsuch families shall be excluded.

(4) Every member of a company, association or partnership carrying on business incontravention of this section shall be personally liable for all liabilities incurred insuch business.

(5) Every person who is a member of a company, association or partnership formedin contravention of this section shall be punishable with fine which may extendto 1[ten thousand rupees]http://www.vakilno1.com/bareacts/companiesact/s11.htm

The Companies Act, 1956

109A. Nomination of shares.

1[109A. Nomination of shares.(1) Every holder of shares in, or holder ofdebentures of, a company may, at any time, nominate, in the prescribed manner, aperson to whom his shares in, or debentures of, the company shall vest in the eventof his death.

(2) Where the shares in, or debentures of, a company are held by more than oneperson jointly, the joint-holders may together nominate, in the prescribed manner, aperson to whom all the rights in the shares or debentures of the company shall vestin the event of death of all the joint-holders.

(3) Notwithstanding anything contained in any other law for the time being in force orin any disposition, whether testamentary or otherwise, in respect of such shares in,or debentures of, the company, where a nomination made in the prescribed mannerpurports to confer on any person the right to vest the shares in, or debentures of, thecompany, the nominee shall, on the death of the shareholder or holder of debentures

of, the company or, as the case may be, on the death of the joint-holders becomeentitled to all the rights in the shares or debentures of the company or, as the case
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may be, all the joint-holders, in relation to such shares in, or debentures of thecompany to the exclusion of all other persons, unless the nomination is varied orcancelled in the prescribed manner.

(4) Where the nominee is a minor, it shall be lawful for the holder of the shares, or

holder of debentures, to make the nomination to appoint, in the prescribed manner,any person to become entitled to shares in, or debentures of, the company, in theevent of his death, during the minority.]

http://www.vakilno1.com/bareacts/companiesact/s109a.htm

Central Government ActSection 11 in The Companies Act, 1956

11. Prohibition of associations and partnerships exceeding certain number.

(1)No company, association or partnership consisting of more than ten persons shall be

formed for the purpose of carrying on the business of banking, unless it is registered as a

company under this Act, or is formed in pursuance of some other Indian law.

1. Subs. by Act 46 of 1977, s. 2, for the words and figures" Chapter XXXV of the Code of Criminal Procedure,

1898 ".

2. Subs. by Act 31 of 1988, s. 4 (w. e. f. 31- 5- 1991 ).

3. Ins. by s. 5, ibid. (w. e. f. 31- 5- 1991 ).

(2)No company, association or partnership consisting of more than twenty persons shall be

formed for the purpose of carrying on any other business that has for its object the

acquisition of gain by the company, association or partnership, or by the individual members

thereof, unless it is registered as a company under this Act, or is formed in pursuance of

some other Indian law.

(3)This section shall not apply to a joint family as such carrying on a business; and where a

business is carried on by two or more joint families, in computing the number of persons for

the purposes of sub- sections (1) and (2), minor members of such families shall be excluded.

(4)Every member of a company, association or partnership carrying on business in

contravention of this section shall be personally liable for all liabilities incurred in such

business.

(5)Every person who is a member of a company, association or partnership formed in

contravention of this section shall be punishable with fine which may extend to one

thousand rupees. Memorandum of Association

http://indiankanoon.org/doc/1080390/
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