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Questions and Answers
Which of the following best describes a company's 'separate legal entity' characteristic?
Which of the following best describes a company's 'separate legal entity' characteristic?
- The company is considered distinct from its members, capable of entering contracts and owning property. (correct)
- The company's existence depends on the continuous involvement of its original members.
- The company's assets are directly owned by its shareholders.
- Shareholders are personally liable for the company's debts up to their investment.
In the Salomon v. Salomon & Co. case, what was the main point the court emphasized?
In the Salomon v. Salomon & Co. case, what was the main point the court emphasized?
- A company is a separate legal entity, distinct from its shareholders, even if a shareholder holds the majority of shares. (correct)
- A company is merely an agent of its principal shareholder.
- Family members who own shares in a company are jointly liable for the company's debts.
- A company's debts should be prioritized based on the shareholder's initial investment.
What does the term 'perpetual succession' imply for a company?
What does the term 'perpetual succession' imply for a company?
- The company is dissolved upon the insolvency of a majority shareholder.
- The company's lifespan is limited to the tenure of its initial board of directors.
- The company continues to exist even after changes in ownership or the death of its members. (correct)
- The company must be re-registered every 20 years to maintain its legal status.
Why is a 'common seal' significant for a company?
Why is a 'common seal' significant for a company?
What does 'transferability of shares' in a company typically entail?
What does 'transferability of shares' in a company typically entail?
A public company, according to the Companies Act 2013, must have at least how many members?
A public company, according to the Companies Act 2013, must have at least how many members?
What is the minimum number of directors required for a public company?
What is the minimum number of directors required for a public company?
What is the purpose of a 'prospectus' issued by a public company?
What is the purpose of a 'prospectus' issued by a public company?
A public company cannot continue business if it does not receive what percentage of the shares offered to the public?
A public company cannot continue business if it does not receive what percentage of the shares offered to the public?
What document is essential for a public company to acquire before starting its business operations?
What document is essential for a public company to acquire before starting its business operations?
What is the definition of Corporate Identity Number (CIN)?
What is the definition of Corporate Identity Number (CIN)?
What is a key restriction that differentiates a private company from a public company?
What is a key restriction that differentiates a private company from a public company?
What is the minimum paid-up capital requirement for a private limited company?
What is the minimum paid-up capital requirement for a private limited company?
How many directors must a private company have?
How many directors must a private company have?
What is a significant privilege or exemption available to a private limited company?
What is a significant privilege or exemption available to a private limited company?
According to the practical problem, in a private limited company with 204 members, where 6 were former employees, what is the implication?
According to the practical problem, in a private limited company with 204 members, where 6 were former employees, what is the implication?
Which of the following statements is most accurate regarding a One Person Company (OPC)?
Which of the following statements is most accurate regarding a One Person Company (OPC)?
What is a key difference between an OPC and a private limited company concerning perpetual succession?
What is a key difference between an OPC and a private limited company concerning perpetual succession?
How many directors are required for a One Person Company (OPC)?
How many directors are required for a One Person Company (OPC)?
Which of the following conditions applies to financial statements of a One Person Company (OPC)?
Which of the following conditions applies to financial statements of a One Person Company (OPC)?
A petition is filed in labor court against Vineeth OPC Private Limited stating that Resolutions relating to HR related welfare rules are drafted by Director individually with out passing any resolutions in BOD or AGM Meeting, Is it a valid complain?
A petition is filed in labor court against Vineeth OPC Private Limited stating that Resolutions relating to HR related welfare rules are drafted by Director individually with out passing any resolutions in BOD or AGM Meeting, Is it a valid complain?
An OPC can get itself converted into a Private Company or Public Company other than Companies registered under which of the following sections?
An OPC can get itself converted into a Private Company or Public Company other than Companies registered under which of the following sections?
Which form needs to be filled up for conversion of One Person Company in to Private or Public company electronically?
Which form needs to be filled up for conversion of One Person Company in to Private or Public company electronically?
What is the maximum paid-up capital for a private company to convert into a One Person Company?
What is the maximum paid-up capital for a private company to convert into a One Person Company?
For a private company to convert to an OPC, its average annual turnover during the relevant period must be:
For a private company to convert to an OPC, its average annual turnover during the relevant period must be:
What resolution is generally required by a private company to convert itself into a One Person Company?
What resolution is generally required by a private company to convert itself into a One Person Company?
According to the content, what defines a 'small company' under Section 2(85) of the Companies Act 2013?
According to the content, what defines a 'small company' under Section 2(85) of the Companies Act 2013?
If 'Radiant Private Limited' has 500,000 equity shares of Rs.10 each fully paid and two shareholders sold their shares to 'Srilakshmi Limited' at Rs.15 per share. What is the implication of this share transfer assuming it adheres to all regulations?
If 'Radiant Private Limited' has 500,000 equity shares of Rs.10 each fully paid and two shareholders sold their shares to 'Srilakshmi Limited' at Rs.15 per share. What is the implication of this share transfer assuming it adheres to all regulations?
Which of the following is a primary objective of registering a Section 8 company in Karnataka?
Which of the following is a primary objective of registering a Section 8 company in Karnataka?
When a company's Memorandum of Association mentions that shareholders liability is limited by a Guarantee in the Liability Clause, how is the company classified?
When a company's Memorandum of Association mentions that shareholders liability is limited by a Guarantee in the Liability Clause, how is the company classified?
What minimum percentage of paid-up share capital must be held by the government for a company to be classified as a Government Company?
What minimum percentage of paid-up share capital must be held by the government for a company to be classified as a Government Company?
According to the provided information, regarding the appointment of Independent Director for Government Company, what is the condition regarding share holding?
According to the provided information, regarding the appointment of Independent Director for Government Company, what is the condition regarding share holding?
When is a company referred to as a 'Domestic Company'?
When is a company referred to as a 'Domestic Company'?
Under U/S 2 (42)of Companies Amendment Act 2013, when is a company or body called foreign company?
Under U/S 2 (42)of Companies Amendment Act 2013, when is a company or body called foreign company?
What is the timeline within which a foreign company must furnish documents to the Registrar of Companies after establishing a business in India?
What is the timeline within which a foreign company must furnish documents to the Registrar of Companies after establishing a business in India?
Which document is required from RBI for bringing capital in foreign currency in India as a foreign company?
Which document is required from RBI for bringing capital in foreign currency in India as a foreign company?
What information related to directors should be provided to Registrar of companies by a foreign company?
What information related to directors should be provided to Registrar of companies by a foreign company?
Flashcards
What is a Company?
What is a Company?
A voluntary association of persons with divisible capital (shares), contributing money/worth for trade/business, sharing profit/loss.
Separate Legal Entity
Separate Legal Entity
A company is legally separate from its members; it can enter contracts, own property, and sue/be sued independently.
Salomon vs. Salomon Case
Salomon vs. Salomon Case
Salomon transferred his boot making to Salomon Ltd., his family owned shares and debentures.
Perpetual Succession
Perpetual Succession
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Common Seal
Common Seal
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Transferability of Shares
Transferability of Shares
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Public Company
Public Company
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Private Company
Private Company
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One Person Company (OPC)
One Person Company (OPC)
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Contents of Memorandum
Contents of Memorandum
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Government Company
Government Company
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Define: Foreign Company
Define: Foreign Company
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Corporate Viel
Corporate Viel
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What is CIN?
What is CIN?
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Minimum paid up capital for a public limited company
Minimum paid up capital for a public limited company
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Minimum paid-up share capital for OPCs
Minimum paid-up share capital for OPCs
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Average annual turnover to become an OPC
Average annual turnover to become an OPC
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Capital to become an OPC
Capital to become an OPC
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Limited liability
Limited liability
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Study Notes
Company Definition
- A company is a voluntary association of people established for business activities
- It has capital divided into shares
- An association where members contribute money or assets to a common stock
- This stock is used in a trade or business for a common purpose
- Members share profits or losses
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