Download App

Forms of Business Organisation-2 — OCM STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceOCMForms of Business Organisation-25 Marks
Question
Explain in brief various types of the company.
✓

Answer

 
types of company.PNG
  • Statutory company :
  • Some companies are called statutory companies.
  • They came Imo existence through passing special act in parliament or legislative assembly in the interest of general public.
  • e.g. Reserve Bank of India. $LI.C.$ (life Insurance Corporation of India), Unit Trust of India etc.
  • Types of Company from the view point of Number of Member :
  • Public Company :
  • As pet the definition of Companies Act, the company which is not a Private Company is a Public Company.
  • Minimum $7$ members are required in it. There is no restriction on the maximum number of members.
  • It can invite public to buy its shares or debentures.
  • There is no restriction on transfer of its shares.
  • The liability of its members is limited. There are three types of public company from the view point liability.
  • Company with limited Liability with share capital :
  • The liability of this type of public company is limited to the price of the face value of shares they have purchased.
  • It is a limited company. The word 'limited' is to be written at the end of the name of company.
  • Company with limited liability by Guarantee :
  • The liability of the members of this company is limited up to the amount of guarantee they have given.
  • At the time of dissolution of company the amount of guarantee is to be paid.
  • Company with Unlimited Liability :
  • The members of this type of company have to sell their private assets and repay the debts if it exceeds the assets of the company.
  • They have to sell private assets when the company is dissolved.
  • Private Company :
  • Private company is a company in which there are minimum $2$ members and maximum $200$ members.
  • It cannot invite general public to purchase its shares and debentures.
  • Transfer of its shares is controlled. There are three types of this company.
  • Company with Limited Liability of Share Capital :
  • The liability of the members of this type of private company is limited to the price of the face value of shares they have purchased.
  • At the end of the name of the company, 'Private Limited' is to be written.
  • Company with Limited Liability by Guarantee :
  • The liability of the members of this type of company is restricted to the money guaranteed.
  • Only guaranteed amount is given at the time of dissolution.
  • At the end of the name of the company, the word 'Private' is to be written.
  • Company with Unlimited Liability :
  • Liability of members of this company is unlimited.
  • At the time of dissolution of company, and when the debt of the company exceeds the assets of the company then the members have to sell their personal assets and repay the debt.
  • At the end of the company's name the word 'Private' is to be written.
  • One Person Company:
  • There was no provision for such type of company up to $2013$ of Company Act $1956.$
  • The Act was amended and implemented in $2014$ in which the provision was made that private company can be formed by a single person.
  • Type of Company from the view point of Control :
  • Government Company :
  • A company of which minimum $51\%$ paid up share capital is held by
  • $(1)$ Central government
  • $(2)$ State government
  • $(3)$ more than One State government
  • $(4)$ Jointly by Central government and more than One State government is called 'Government Company.' e.g. Bharat Heavy Electrical Ltd. $(BHEL)$, Ashok Hotels Ltd.
  • Mahanagar Telephone Nigam Ltd. $(MTNL),$ Hindustan Machine Tools Ltd. $(HMTL).$
  • Holding Company :
  • A company which holds $50%$ or more shares and gets the right to appoint majority directors in that company then that company is called holding company.
  • Subsidiary Company :
  • The company of which $50%$ or more shares are purchased by a holding company and the powers to appoint majority of the directors, such a company is called a subsidiary company of that holding company.
  • Types of Company from the view point of Place of Registration :
  • Indian Company :
  • Any company which is registered (incorporation) under Companies Act of India or by a special law in India is called Indian Company.
  • It can be a private, public and government company.
  • Foreign Company :
  • The company which is registered out of India, and its registered office is out of India but its business place is in India is called a 'Foreign Company'.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "5 Marks Each" from Forms of Business Organisation-2→Forms of Business Organisation-2 — all question types→OCM STD 11 Commerce question papers→Gujarat Board STD 11 Commerce question papers→Gujarat Board question paper generator→

Similar questions

Show the classifications of warehouse with the help of chart. Explain custom duty paid warehouse.
→
Show the difference pay order and Demand Draft.
→
What is Public Deposit ? Explain advantages and limitation of Public Deposit.
→
Explain the advantages and limitation of sole proprietorship.
→
"Public-private partnership is an aggrangement due to the need of time." - Explain.
→
Explain: 'Government departmental system of public enterprise.
→
Give meaning of preference share and explain its characteristics.
→
Define share and explain the charactristics of equity share.
→
State the difference between Share and Debenture.
→
State the different between Equity share and preference share.
→