It 235 pros cons and legal issues draft

Controversy and conflict Ancient kingdom of Macedonia c. The modern Greek region of Macedonia approximately corresponds to that of ancient Macedonia.

It 235 pros cons and legal issues draft

Company-Common meaning thereof The word "company" is often used in common parlance without due regard to its technical meaning and as covering partnerships as well as other associations. Section 3 of the Companies Act, only gives a comprehensive, statutory definition of the term I company' without any detailed explanation.

Though the word company is generally defined in section 3, that definition cannot be used to cut down the scope of the word company as defined in other sections for their own different purpose Telesound India Ltd.

In re, 53 Com Cases Delor defined in other statutes for their own specific requirements. Meaning under the Companies Act, Section 2 10 defines company meaning a company as defined in section 3 and section 3 l gives the meaning of the expression 'company', existing company, private company and public company subject to the provisions of sub-section 3 2 and unless the context otherwise requires as company meaning a company formed and registered under this Act or an existing company.

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Further it provides that existing company means a company formed and registered under any of the previous companies laws specified therein. Amendment in Section 3 Section 3 of the Act giving definition of company is amended by the Companies Amendment Act, so as to provide for a minimum paid-up capital of one lakh rupees for a private company and a minimum paid-up capital of five lakh rupees for a public company or such higher paid-up capital as may be prescribed and it also provides that no private company shall invite or accept deposits from persons other than its members, directors or their relatives.

A company registered under section 25 before or after the commencement of the Companies Amendment Act, will not be required to have minimum paid-up capital specified above.

Company distinct and independent legal person A company duly incorporated and registered is a distinct and independent legal person having perpetual succession and a common seal.

In law it is a legal independent person distinct from its members. Its assets are separate and distinct from those of members.

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It can sue and be sued in its own name. An incorporated company devotes a legal entity the validity of which and the effect of which depends on the law of the country in which it is established. Heddon, 6 T. A company is an abstraction of law.

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It has no mind of its own any more than it has a body of its own; its active and directing will must consequently be sought in the person or somebody who for some purposes may be called an agent but who is really the directing mind and will of the corporation, the very ego and centre of the personality of the corporation.

Directing mind and will of company vests in Directors As stated above an incorporated company being a distinct legal person cannot physical act on its own and therefore needs somebody to act on its behalf and carry on the affairs of the company. To act one needs at least a physical human body and a mind.

A company does not have any of them and it is just a creation of law. The persons in whom the directing mind and will of the company vests are termed as 'Directors' and collectively referred to as the "Board of Directors" or "Board".

The Board is the managerial body. It is constituted by the general body of shareholders. Definition of Director in the Act Section 2 13 defines director to include any person occupying the position of director, by whatever name called. Whether a person in fact is a director or not will be determined not just by the name by which a person is called but the position he occupies and the functions and duties which he discharges.

It 235 pros cons and legal issues draft

A director will be functioning as a director when he is duly appointed by the company to control the company's business and is also authorised to contract in the name and on behalf of the company.

It is a condition precedent for a director to represent the company in court proceedings that he must be authorised.

Extent of Powers

Bell South International v. Powers of Board of Directors-Powers of Management vests in Board All the powers of management of the affairs of the company are vested in the Board of directors. The Board thus becomes the working organ of the company. In their domain of power, there can be no interference, not even by shareholders.

They are exclusively empowered to manage and are exclusively responsible for the management of a company. Under section Board of Directors have been given all the powers of the company except those which are required to be exercised in the general meeting of the company either under the Act itself or under the memorandum and articles of the company.

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