Question

summary writing law ca foundation
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Answer 1

Explanation:

• Business Law Notes For CA Foundation November 2020 Exams
• Companies Act 2013 Summary for CA Foundation November 2020 Exams
• Company
• An artificial person created under the Companies Act, 2013 with distinct characteristics of separate legal entity and perpetual succession.
• The capital of the company is divided into transferable shares and shareholders called as members.
• The member of the company generally has limited liability up to the extent of unpaid nominal value of shares held by him.
• Business Law Brief Notes for CA Foundation Exam (Premium Product)
• Corporate veil theory
• Saloman vs. Saloman & Co. Ltd. laid that company is a juristic person different and separate from its members.
• Under certain situations the courts may lift the corporate veil/ veil of incorporation and thus disregard the separate legal entity of the company. This is called lifting the corporate veil.
• Incorporation of company
• A company is said to come into existence only after its registration and issue of Certificate of
• Incorporation.
• The company to be incorporated must be validly constituted and be an association for a lawful purpose. After all the formalities are compiled and the Registrar is satisfied, the company is registered under the Act.
• On registration the Registrar shall issue a Certificate of Incorporation to the company.
• To provide an integrated process of incorporation, the MCA has introduced SPICe for simplifying the filing of forms.
• Effect of registration
• From the date of incorporation the company becomes a legal person by the name contained in the Memorandum and capable of exercising all the functions of an incorporated company.
• The issue of Certificate of Incorporation is considered as conclusive evidence as to compliance of all the legal formalities in respect of registration of company.
• Capital
• Nominal or authorized share capital: Authorized by memorandum to be the maximum amount of share capital
• Issued share capital: That part of authorized capital which us offered by the company for subscription
• Subscribed share capital: Such part of the capital which us for the time being subscribed by the members of a company.
• Called up capital: Such part of the capital that has been called for payment.
• Paid up capital: It is the total amount paid or credited as paid up on shares issued. Paid up capital = Called up capital – calls in arrears.
• Share Capital
• Equity share capital: with reference to any company limited by shares, means all share capital which is not preference share capital.
• Preference share capital: with reference to any company limited by shares, means that part of the issued share capital of the company which carries or would carry a preferential right with respect to— payment of dividend and repayment.

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