Project on Company Formation

17279 Words Aug 31st, 2012 70 Pages
project
COMPANY FORMATION

Welingkar Institute of Management

Development & Research.

Year of submission: - April, 2011.

Acknowledgement

Certificate from the guide
Table of contents

ÔØû TITLE PAGE ÔØû CERTIFICATE FROM THE GUIDE ÔØû ACKNOWLEDGEMENT

A. INTRODUCTION B. BACKGROUND C. METHODOLOGY D. CONCLUSION E. RECOMMENDATION F. LIMITATION G. BIBLOGRAPHY Introduction:-
A company is an association of both natural & artificial persons incorporated under the existing law of a country. Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from
…show more content…
Company is liable for a criminal offence

A company can be held liable for criminal intention. A company can be held liable for an offence of conspiracy to defraud. If act was criminal act of an officer, to make company liable it must be proved as a matter of fact that officer was acting within limits of his authority on behalf of company.

Company can be a trustee

A company can act as a trustee if permitted by its objects clause.

Company cannot be a receiver

Body corporate is not qualified for appointment as receiver of property of a company formed and registered under Companies Act.

Major constituents of a company

The major constituents of a company are its members, who are the ultimate owners, and its directors. It is an important feature of the company form of business, that there is a gap between the ownership and control over the affairs of the company. In real sense the members are the owners of a company, but it is being managed by the directors who are elected representatives of its members, because it is absolutely necessary for it to have a human agency called as the company's Board of directors. The Board of directors comprises the directors.

Lifting of the Corporate Veil

The basic principle, that the company is a distinct legal entity from its members, is regarded as a curtain or a veil between the…