Secretarial Practice Answer in brief

1. Government Company: A government company means a company in which more than 51% of paid-up capital is held by
   • Central Government or
   • one or more State Governments or
   • partly by Central and partly by State Government or
   • Subsidiary Company of Government Company. It may be a private or a public company.
2. Foreign Company: It means a company that is incorporated outside of India, but having business in India.
3. Dormant company: A company that is registered for a future project or has not made any significant accounting transactions in the last two years or has not filed financial statements or annual returns in the last two years is called a Dormant company.
4. Listed Company: A company that has listed any of its securities on any recognized stock exchange is called a Listed Company. Such a company has to follow SEBI’s guidelines and the provisions of the Companies Act, 2013.

• It is an association of persons formed under the Companies Act, 2013 to run a business.
• Private Company minimum 2 members and maximum 200 members.
• Public Company minimum 7 members and maximum unlimited.
• Registration is compulsory under the Indian Companies Act, 2013.
• The liability of all members is limited.
• It has a stable business. Death or insolvency of a member will not affect the stability.
• It requires a huge amount of capital.
• It maintains less business secrecy.
• The Board of Directors is responsible for the management of Joint Stock company.
• There is more government control on working of the Joint Stock company.

Joint Hindu Family Business (JHFB):

• It is a business organization owned and managed by members of the Joint Hindu Family.
• There is no limit on the minimum and maximum number of members.
• Registration is not necessary.
• Karta has unlimited liability while Co-parceners have limited liability.
• It has no stability. Death or insolvency of members may affect stability.
• Comparatively, it requires limited capital.
• It maintains maximum secrecy.
• Karta is responsible for the management of the business.
• There is less government control.