Companies Act India

Ans: The voting right will be in the percentage of his shares in the paid-up equity share capital of the company. Therefore, if a shareholder owns 51% of the company's stake, he will have the right to exercise majority control over the company. Section 47 of the Company's Act 2013 bestows voting rights to the shareholders.

Ans : To ameliorate corporate governance and investment protection , the implementation of companies act, 2013 was a milestone in corporate reforms of India.  But there are also some difficulties and some amendments were required and thus pursuant to these repesentations, the ministry of corporate affairs constituted a company law committee for addressing these concerns.

Ans: The minimum number of partners are two. The maximum number of partners are 50. Companies Act, 2013( Section 464), Companies Miscellaneous) Rules, 2014( Rule 10) . All terms can be decided by the partners,  and in absence of any specific term the relevant sections of the Act will apply. Each partner is the agent of other partner and this relationship is called Principal Agent Relationship ( Joint and Several Liability).

Ans: Term is governed by the Agreement/ Deed. If silent,  it is 'partnership at will '. All terms can be decided by the partners,  and in absence of any specific term the relevant sections of the Act will apply.

Ans: The partnership firm is governed by Indian Partnership Act, 1932 and state rules.  The partners individually and collectively make firm. Generally in every act, the powers are given to make rules. In Indian Partnership Act, the power to make rules are given to state government. The parties in partnership firm are called the partners. Contract is essential and basis of a partnership firm.

Ans: Corporate personality is not a natural creation and is the creation of law of the country whereas the individuals who are  created by nature are also the legal persons. Company is also a legal person. In accordance with the law, a corporation is an artificial person which was created by the personification of a group of individuals. The theory of corporate personality mainly states  that a company has a legal identity which is different from its members. Both English law at the time of Britishers as well as Indian laws follow the concept of corporate personality. So far as legal persons are concerned, there are two kinds of legal persons: 1. Natural persons (Individuals) 2. Artificial persons (Corporations) The creditors are the persons who credit money to the company like shareholders as well as they are permitted to recover their money only from the company and the creditors can not sue or plead individual members. Similarly, the company is not liable to pa...

Ans: Difference between Company,  Sole Proprietorship and Partnership:  1. Company is a corporate body which can be public or private company having limited or unlimited liability. In Sole Proprietorship Business Organization, the only one person is the owner as well as the operator of the business. In Partnership business, there is an association of two or more people who agree to carry business as well as mutually share profits and losses. 2.The Governing act in Company law is Companies Act, 2013 whereas there is no governing act of Sole Proprietorship Firm. The Governing Act of  Partnership Firm is Indian Partnership Act, 1932. 3. So far as members are concerned in company, there are minimum 2 members and maximum 200 members in Private limited company whereas there are minimum seven members and maximum members are unlimited in public limited company.  There is only one member in sole proprietorship firm. There are minimum 2 members and maximum 100 members...

Ans: Hindu undivided family ( HUF ) is also known as Joint Hindu Family business is a type of family  business  which comprises of all persons  with " Karta " being the head of the family , whereas other family members are coparceners . It is governed by Hindu law. Karta manage all day to day affairs of the business .  There are usually two systems of HUF,namely Dayabhaga system : 1. In Dayabhaga System, Coparceners include both Male as well as female of the family . 2. The Mitakshara members includes only male members in the Hindu Undivided family business but this has been amended via the Hindu Succession Act , 1956 which provides equal rights to both male as well as female members. Features - 1. Hindu Undivided family business requires minimum two family members to form a HUF. 2. The members in the business of Hindu Undivided family will be admitted by birth only . Thus, Hindu Undivided family business includes minors too . 3. Unlike Karta , the liabi...

Ans: In simple words, it is one man business organization. All the assets of the business and profit generated out of business are owned by sole proprietor. The sole proprietorship is achieved under Shops and Establishments act , 1958 in Madhya Pradesh. The advantage of sole proprietorship is complete control and freedom to make quick decisions regarding the business. There is no sharing of profits. A significant disadvantage is unlimited liability. He can have access to limited capital. A single person can not be expert in every sector of business.  This leads to limited managerial liability. Section 2(62) of the Companies Act, 2013 defines a 'One Person Company' as a company which has only one person as a member. Simplifying thereof, a 'One Person Company' can be formed by only one member and one director. Importantly, the member and director can be the same person.