Q: Difference between Companies act, 2013 and partnership act , 1932 ?

Ans:
1. Partnership firm requires partnership deed whereas incorporation of company requires memorandum of association and articles of association.  
2. A member whose name is entered in the register of members of company is member of company. It is not mandatory that the member will be the the shareholder. The minimum number of members in the partnership firm are 2 and minimum number of members for private limited company are 2 and minimum number of members for public limited company are 7 and one for one person company. 
3. The maximum number of partners in partnership firm are 100.  The maximum number of members in private limited company are 200 and maximum number of members in  public limited company are unlimited. 
4.  The company comprises of members and directors.  Thus minimum number of directors as per section 149(1) of companies act are 2 in case of private limited company and 3 in case of public limited company and one for a one person company and the maximum number of directors can be 15 but by passing a special resolution.  
5. The minimum paid up capital required for private limited company is Rs 1 lakhs and minimum paid up capital required for public limited company is Rs 5 lakhs.  No such amount is required for public limited company.  
6. No audit is required for sole proprietorship firm and audit is required for partnership firm. 


Comments

Post a Comment

Popular posts from this blog

Q: When was the concept of limited liability first introduced?

Ans: In the 17th century, the joint stock charters were awarded by the crown to monopolies such as the East India Company. The world's first modern limited liability law was enacted by the state of New York in 1811. In England,  it was to be incorporated a joint stock company following the Joint Stock Companies Act 1844 as well as Joint stock companies act, 1850 even if the investors in such companies carried unlimited liability until the Limited Liability Act 1855.
Read more

Q: Elaborate Section 2(68) of companies act, 2013 ?

Ans: Section 2(68) of Companies Act, 2013 defines private companies. According to that, private companies are those companies whose articles of association restrict the transferability of shares and prevent the public at large from subscribing to them. This is the basic criterion that differentiates private companies from public companies. This definition had previously prescribed a minimum paid-up share capital of Rs. 1 lakh for private companies, but an amendment in 2005 removed this requirement. Private companies can now have a minimum paid-up capital of any amount. No minimum capital required: There was a minimum paid-up share capital requirement of Rs. 1 lakh previously, but that is omitted now. The Section further says private companies can have a maximum of 200 members (except for One Person Companies). This number does not include present and former employees who are also members. Moreover, more than two persons who own...
Read more