Page 125 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework Amit Kumar Sharma, Lovely Professional University

Notes Unit 7: Companies Act, 1956

CONTENTS

Objectives
Introduction
7.1 Meaning of Company Act, 1956
7.2 Salient Feature of a Company
7.3 Lifting the Corporate Veil

7.4 Types of Companies
7.5 Conversion of Private Company into a Public Company
7.6 Conversion of Public Company into a Private Company
7.7 Holding and Subsidiary Companies

7.8 One-man Company
7.9 Non-trading Company or Association not for Profi t
7.10 Government Company
7.11 Foreign Company
7.12 Summary

7.13 Keywords
7.14 Self Assessment
7.15 Review Questions
7.16 Further Readings

Objectives

After studying this unit, you will be able to:
Discuss meaning of Companies Act, 1956
Explain kinds of companies

Introduction

In the earlier unit, you came to know about the Foreign Exchange Management Act and Negotiable
Instruments Act. In this unit, you will study about the Companies Act, 1956.
th
Indian company law was originally founded in the 18 century, based on the English Company
th
Law. It was only in the later half of the 19 century that a Committee under the Chairmanship
of H C Bhaba was formed to revise the Indian Companies Act with particular reference to its
bearing on the trade and industry. The Companies Act, 1956 was introduced in the Parliament
based on the recommendations of the Committee. It has been amended many times since then.
Since the Companies Act, 1956 forms the backbone of the industry, it is imperative that each
business manager should have knowledge of the Act.

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