Company Law and Secretarial Practice Notes
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Short Question Q.1 Define Company under Company Law. Ans. In terms of Section 3 2 i of the Companies Act, 1956, a company means "A company formed and registered under company Act 1956 or an existing company. An existing company means a company formed and registered under any of the former companies Act." Q.2 Wlial is Body Corporate Ans. According to Section 2 7 , Body Corporate or Corporation includes a company incorporated outside of India but does not include as follows i
A corporate sole. ii
A cooperative society registered under any law relating to co-operative
Any other body corporate declared by Central Govt. in its gazette.
Q.3 What do you mean by holding company Ans. According to section 4 4 a company shall be deemed to be holding company of another if but only if that other is its subsidiary. Hence, a company has control over another company, the controlling company is known as holding company and the company is known as holding company and the other company is known subsidiary company. Q.4 What is a Government Company Ans. According to Section617 "a Govt. company means any company in which not less than 51 of the paid up share capital is held by the following i
By the Central Govt
By any State Govt. or Governments or
Partly by Central Govt. And partly by one or more State Governments.
A subsidiary of a Government Company is an also Government Company. Q.5 Foreign companies Ans. According to Section 591 1 "A foreign company is the company which is or has been incorporated outside India but establish or has established a place of business within India." Q.6 What is one man company Ans. It is also known as family company. The one man holds entire share capital of the company. Other person holds only the minimum or negligible number of shares in the