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Questions and Answers
Which form of business organization is characterized by having a Board of Directors?
Which form of business organization is characterized by having a Board of Directors?
In a Co-operative Society, who constitutes the managing body?
In a Co-operative Society, who constitutes the managing body?
Which type of company has an independent legal entity with a common capital comprised of transferable shares?
Which type of company has an independent legal entity with a common capital comprised of transferable shares?
In which form of business organization does the government have the least control over the working?
In which form of business organization does the government have the least control over the working?
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Which type of company is known to have limited government control over its operations?
Which type of company is known to have limited government control over its operations?
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What is a key characteristic of a Joint Stock Company developed after the industrial revolution?
What is a key characteristic of a Joint Stock Company developed after the industrial revolution?
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Why do shareholders elect the Board of Directors?
Why do shareholders elect the Board of Directors?
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What happens to membership in a company when shares are sold?
What happens to membership in a company when shares are sold?
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Why can a Joint Stock Company raise huge capital?
Why can a Joint Stock Company raise huge capital?
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What is a requirement for the number of members in a private limited company?
What is a requirement for the number of members in a private limited company?
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Why do shareholders of a public company have the freedom to sell shares?
Why do shareholders of a public company have the freedom to sell shares?
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Why is registration compulsory for all companies?
Why is registration compulsory for all companies?
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What is the role of the Secretary in a company?
What is the role of the Secretary in a company?
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Which legislation defines the appointment requirements for a Company Secretary in India?
Which legislation defines the appointment requirements for a Company Secretary in India?
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What qualification is required for a Company Secretary in India?
What qualification is required for a Company Secretary in India?
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Who is considered the administrative head of a Ministry or Department in Government departments in India?
Who is considered the administrative head of a Ministry or Department in Government departments in India?
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How are Key Managerial Personnel (KMP) defined in the Companies Act 2013?
How are Key Managerial Personnel (KMP) defined in the Companies Act 2013?
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What examination must a Government Secretary in India pass to qualify for the position?
What examination must a Government Secretary in India pass to qualify for the position?
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Study Notes
Characteristics of Joint Stock Company
- Shareholders are the real owners of the company, but they cannot manage the day-to-day affairs due to their large number, scattered location, and frequent changes.
- The Board of Directors is elected by shareholders to manage the company and make policy decisions.
Transferability of Shares
- Shares of a public company are freely transferable, allowing shareholders to sell their shares as desired.
- Membership ends once shares are sold.
Membership
- A private limited company must have a minimum of 2 members and a maximum of 200 members.
- A public limited company must have a minimum of 7 members, with no limit on the maximum number of members.
Capital
- Joint Stock Companies can raise huge capital due to a large number of members.
- Capital can be collected through shares, debentures, bonds, public deposits, and loans from banks and financial institutions.
Government Control
- Joint Stock Companies operate under government control and supervision, requiring compulsory registration.
- Registered companies must follow regulations stated in company law.
Types of Companies
- Forms of business organization include Sole Trading Concern, Joint Hindu Family Business, Partnership Firm, Limited Liability Partnership, Joint Stock Company, and Co-operative Society.
Joint Stock Company
- A Joint Stock Company is a registered association with an independent legal entity, perpetual succession, common capital, and limited liability.
- It is a formal form of business organization developed after the industrial revolution.
Types of Joint Stock Companies
- Types of companies based on incorporation: Statutory Company and Registered Company.
- Types of companies based on the number of members: Private Company, Public Company, and One Person Company.
Company Secretary
- A Company Secretary is included in the definition of Key Managerial Personnel (KMP).
- Appointment of Company Secretary is as per the Companies Act 2013.
- Qualification: A Company Secretary must be a member of the Institute of Company Secretaries of India (ICSI).
Secretary of Government Department
- A Secretary is the administrative head of a Ministry or Department in the Government.
- Qualification: A Secretary needs to possess a graduation degree and pass the Civil Services Examination conducted by the Public Service Commission, and be in Indian Administrative Services (IAS).
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Description
Learn about Key Managerial Personnel (KMP) as per the Companies Act 2013. Understand the roles, appointment process, and responsibilities of the Company Secretary who is considered a KMP. Explore the concept covered in Chapter 6 of the Act.
