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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Company’s duty to register its charge – Business Registration

Every company is obligated for creating a charge within or outside India,on its property or asserts or any of its undertakings, whether tangible or otherwise,and situated in or outside India,to register the particulars of the charge signed by the company and the charge-holder together with the instruments ,if any,creating such charge ,with the registrar within thirty days of its creation. Form and Manner for Registration of a company The application for registration of charge shall be submitted to the registrar…

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Formation of company and the related things- Company registration

Formation of company: Incorporation of company and matters incidental thereto: A company may be formed for any lawful purpose by – Seven or more persons, where the company to be formed is to be a public company; (formation of public company) Two or more persons, where the company to be formed is to be a private company; (formation of private company) or One person, where the company to be formed is to be one person company that is to say,…

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Certificates of Shares of the limited company

Certificate of Shares   According to the provisions of the Companies Act,1956, a certificate ,under the common seal of the company,specifying any shares hold by any member,shall be evidence of the title of the member to such shares.A certificate may be renewed or a duplicate of a certificate may be issued if such certificate is provided to have been lost or destroyed ,or have been defaced or mutilated or torn is surrounded to the company.If a Company with intent to defraud…

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What is Memorandum of Association and its Clauses?

Hereby, we are going to discuss what is memorandum of association, purpose and its clauses in detail. Look at this to know some useful information about the company before you set up a business. Memorandum of association: It is the constitution of the company and provides the foundation on which the structure has been built. It is the principal document of the company and it cannot be registered without the memorandum of association. It defines the scope of the company’s…

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All you need to know about the incorporation of a company

Incorporation of companies and its related procedures will be discussed here.  The company can be incorporated through Simplified Proforma for Incorporating a Company electronically (SPICe-INC-32) with e-MoA (Memorandum of Association) (INC32), e-AoA (Articles of Association) (INC-34) is the default option and most companies are required to be incorporated through SPICe only. Incorporation through SPICe: Stakeholders can avail of 5 different services (Reservation of name, Allotment of Director Identification Number (DIN), incorporation of new company, allotment of PAN and TAN) in…

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Everything you need to know about Mergers and Acquisition

Mergers and Acquisition: It’s a term which refers to the consolidation of the companies or assets; it can include a number of transactions such as mergers, acquisition, consolidations, purchase of assets, tender offers and management acquisitions. M&A also refers to the department at financial institutions which deals with mergers and acquisitions.  Transactions of M&A: Merger: In merger, boards of directors for two companies approve the combination and seek for shareholder’s approval. After the merger, the acquired company ceases to exist…

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Effective ways for the entrepreneurs to protect their vision

Affordable and effective ways for the entrepreneurs to protect their vision: Many entrepreneurs might have faced many issues related to the business ideas. If you are very sure about the million dollar idea but you don’t have enough cash to get your idea off the ground. Make sure let that idea alone can be protected. In a capitalist society, pursuing our dreams usually needs more money to be highly successful or otherwise your ideas might get stolen because of having…

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