Companies act 1956 came into force on 1st April, 1956. Central government is the supreme authority responsible for the administration of Companies act 1956.
2. Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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3. Introduction
• Companies act 1956 came into
force on 1st April, 1956. Central
government is the supreme
authority responsible for the
administration of Companies act
1956.
4. Definition
• A company in broad sense
may mean an association of
individuals formed for some
common purpose.
• Section 3(1) (i) of the
Companies Act, 1956 states
that a company means “a
company formed and
registered under this Act, or
an existing company”.
• According to A.A.Barley, “ A
company is a combined
political, social, economic
and legal institution”.
5. Salient features of registered company
• Voluntary Association –
A company is a
voluntary association of
persons who have come
together for a common
object which generally is
to earn profit.
• Incorporated association
– A company comes into
existence on
incorporation under the
companies Act.
6. Salient features of registered company
• Independent Legal
Entity – A company is an
artificial person created
by Law. It has an
independent legal entity
apart from the members
who constitute it.
• Separate property – A
company is capable of
owning, enjoying and
disposing of property in
its own name.
7. Salient features of registered company
• Legal restrictions – The
formation, working and
winding up of a
company are strictly
governed by laws, rules
and regulations.
• Perceptual succession –
A company has a
perceptual succession in
the sense that the life of
a company is not
measured by the life of
any member.
8. Salient features of registered company
• Common seal - It acts as
an official mark of the
company. Anything
done under an
agreement between the
company and the third
party requires the
recognition of the
company in the form of
an official seal.
• Share Capital – A
company mobilizes its
capital by selling it
shares.
9. Salient features of registered company
• Limited Liability – A
shareholder’s liability is
limited to the amount of
share that he has
purchased.
• Transferability of shares
– Shares in a company
are transferable and can
be sold or purchased in
the share market.
10. Salient features of registered company
• Ownership and
management – The
owners of a company
are its share holders.
The affairs of the
company are managed
by their representatives
known as directors
11. Difference between Company and partnership
• A company is the
creation of law where as
partnership is based on
mutual trust between the
partners.
• Registration of company
is compulsory while it is
not compulsory for a
firm.
• A company has a
separate legal existence
where as a firm has not
individual legal status
12. Difference between Company and partnership
• Property of the
company belongs to
the company where as
property of the firm
belongs to the partners.
• Liability of the
shareholders is limited
where are it is
unlimited for partners.
13. National Company Law tribunal
• Section 10 FB inserted by
the companies Act provides
that the central
government shall, by
notification in the Official
Gazette, constitute a
Tribunal to be known as
National company Law
Tribunal to exercise and
discharge such powers and
function as conferred on it.
14. Features of NCLT
• It is a quasi judicial
body composed of
experts in corporate
law.
• It helps faster disposal
of cases.
• It has simpler
procedures and less
formality than courts.
15. National Company Law tribunal
• The tribunal will
consists of a president
and such number of
judicial and technical
members not
exceeding sixty two, as
the central government
deems fit to be
appointed that
Government.
