Q: Elaborate the case of Pramatha Nath Sanyal vs Kali Kumar Dutt on 3 November, 1924 ?

Ans: In the case of Pramatha Nath Sanyal C. Kali kumar Dutt, the company gave an advertisement about the remaining shares of company in newspaper. The court held that the advertisement of newspaper will also be considered as prospectus.

The company will have to mention about itself in the prospectus i.e. working areas of company, litigation on company if any,  etc.

Comments

Post a Comment

Popular posts from this blog

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

Q: How many minimum and maximum directors and members are there in private, public and one person company ?

Ans:  According to section 149(1) of companies act,  2013, the number of directors are as follows:  In private company, there is minimum two directors and two members whereas in public company, there are minimum three directors and seven members and in one person company,  there is minimum one director and one member.  The maximum number of directors in private company, public company and one person company are 15 but by passing special resolution and the maximum number of members in private company are 200 and maximum number of members in public company are unlimited. 
Read more

Q: Difference between sole proprietorship and one person company ?

Ans: Though an OPC and sole proprietorship have only one person/member, their functioning differs. OPC has the features of a company, while the sole proprietorship does not enjoy the benefits of a company . Thus, the sole proprietor has unlimited liability, and the business does not have perpetual succession. The sole proprietorship is registered under shop and establishment act of states.  In company law, perpetual succession is the continuation of a company's/corporation's or other organization's existence despite the death, retirement, bankruptcy, insolvency, insanity, change in membership or an exit from the business of any owner or member, or any transfer of stock etc.
Read more