Definitions of Companies under Companies Act, 2013, This article is specifically about the definitions which are offered under the Section 2 of the Companies Act, 2013 which need to be translated in a much better method to understand more about the Act in detail and to understand the different repercussions due to lack of appropriate analysis of the meanings which may result into substantial penalties. Now examine more information for “Meanings of Companies under Companies Act, 2013” from below …
Definitions of Companies under Business Act, 2013
Meaning of Personal Company:
1. Based on Act:
” private business” suggests a company having a minimum paid-up share capital of one lakh rupees or such greater paid-up share capital as might be recommended,
and which by its articles,–
( i) limits the right to move its shares;-LRB- .
( ii) other than in case of Someone Business, restricts the variety of its members to two hundred:
Supplied that where 2 or more persons hold one or more shares in a company collectively, they shall, for the functions of this stipulation, be treated as a single member:
Supplied further that–
( A) persons who are in the work of the business; and
( B) individuals who, having been previously in the work of the business, were members of the business while because employment and have actually continued to be members after the work ceased, shall not be consisted of in the number of members; and
( iii) prohibits any invitation to the general public to subscribe for any securities of the business.
Personal Limited Company can be incorporated by minimum share capital of Rs. The number of members in the business will leave out the staff members of the company while the joint members of a share would be related to as 1 member.
Meaning of Public Company:
1. As per Act:
” public company” implies a business which–
( a) is not a private company;-LRB- .
( b) has a minimum paid-up share capital of 5 lakh rupees or such higher paid-up capital, as may be prescribed:
Offered that a business which is a subsidiary of a business, not being a personal company, shall be deemed to be public company for the functions of this Act even where such subsidiary business continues to be a private company in its posts.
Firstly the easy definition of the public restricted business is that which is not a private restricted company. The company which has been subsidiary of the company which might be any business except private business will be regarded as public business.
Definition of Small Business:
1. Based On Act:
” little business” implies a business, aside from a public business,–
( i) paid-up share capital of which does not go beyond fifty lakh rupees or such greater amount as might be recommended which shall not be more than five crore rupees; or
( ii) turnover of which according to its last earnings and loss account does not exceed two crore rupees or such greater quantity as may be prescribed which will not be more than twenty crore rupees:
Provided that absolutely nothing in this stipulation will use to–
( A) a holding company or a subsidiary company;-LRB- .
( B) a business signed up under section 8; or
( C) a business or body corporate governed by any special Act;-LRB- .
Small business which whose share capital lies between 50 lakhs to 5 crores, turnover is in between 2 crores to 20 crores. The exemptions from the above to be called as little company are holding business, subsidiary company, area 8 business, and any body corporate which is particularly governed by unique act such as Insurance companies, Banking business, etc.
Meaning of Someone Company:
1. According To Act:
” Someone Business” suggests a business which has just one individual as a member,
A single person company indicates in which just one person is the member and is handling the operations of business separately in the name of the company.
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