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Analysis of Relevant Provisions of Companies Act,1956 – Business Registration

Section 13 of Companies Act,1956 Section 3 of the Companies Act corresponds to section 13 of the 1956 Act and to the extend that both the provisions are similar the case law and commentary on Section 13 of the 1956 Act will be relevant to section 3 of the 2013 Act. Name clause[Section 13(1)(a) of Companies Act,1956] The name of every private company shall contain as its last words,the words “Private Limited”  and every public company shall contain as its…

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Effect of Memorandum & Articles-Business Registration

Section 36 of the 1956 Act corresponds to section 10 of the 2013 Act and explains the effect of the memorandum and articles.They are very important documents and when they are registered they have the following impacts of : They bind the company and the members thereof to the same extend as if they respectively had been signed by the company and by each member. All deeds/covenants on its and his part must observe all the provisions of the memorandum…

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Legal Personality of the Company -Business Registration

A company is a separate legal entity not withstanding the fact that there was only one governing director.The separate legal entity  enabled a director,representing the firm,to enter into a contract of  employment with himself in his individual capacity.one of the characteristics of a company is that it is an incorporated body of persons.It is constituted into a distinct and independent person in law and it is endowed with special rights and privileges.It is not like a partnership firm or a…

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Company’s share and its types and functions

A share is a token or evidence of ownership, and each one represents a vote in the company. Any individual shareholder can have one, or many shares as they required.As every share counts as a vote in the company, the more shares you have then you get more votes.  if a person with 5 shares, he get 4 votes except him. The quantity of these votes depend on how many shares you have .commonly many shares do not be issued…

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