A company is a form of organization in which two or more persons agree to carry a business through a legal procedure.
What is the Company?
It is a voluntary association incorporated under the law by two or more persons for any common purpose (usually a business) and, It is an artificial person created by law that separates it from its members. Furthermore, It has the share capital divided into small units called shares, the owners of which are known as shareholders or members.
In this, the members share a common undertaking and have limited liability. It is not managed by all its members/shareholders but they choose their representatives called Directors to manage the business. Likewise, in Partnership, the continuity of the company is not affected by the death, insanity, or insolvency of its members.
Definitions of Company:
According to Section 2(20) of the Companies Act, 2013,
“Company means a company incorporated under this Act or any previous Company Law.”
According to Prof. Haney,
“A company is an artificial person, created by law having separate entity with perpetual succession and a common seal.”
In the words of Justice Lindley,
“A company is an association of many persons who contribute money or money’s worth to common stock and employ it for a common purpose. The common stock so contributed is denoted in money and the capital of the company. The persons, who contribute it or to whom it belongs, are its members.”
Some examples of Companies are:
- Reliance Industries Limited
- Coal India
- Hindustan Unilever
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Chapter No. 8 – Company Accounts (Share Capital)- USHA Publication Class +2 – Solution
Question-wise solution of all Questions of Chapter No. 8 – Company Accounts (Share Capital)- USHA Publication Class +2 – Solutions are shown below: –