The Company's Act Quiz

The correct answer is 1956. The Companies Act was formed in 1956.

A document that is used to invite shares from the public is called a prospectus. A prospectus provides detailed information about a company, including its financials, business operations, and investment opportunities. It is typically used by companies when they are offering shares or securities to the public for the first time. The prospectus helps potential investors make informed decisions by providing them with all the necessary information about the company and its offerings.

A statutory company is a type of company that is created by a special act of legislation. This means that it is established by a specific law or statute passed by the government. Unlike public and private companies, which are formed under general company laws, a statutory company has its own unique legal framework and powers granted by the legislation that created it. This type of company is often created for specific purposes or to carry out specific functions that are deemed to be in the public interest.

Private companies cannot give invitations to the public to subscribe shares because they are not publicly traded on a stock exchange. Private companies are owned by a small group of individuals or entities and their shares are not available for purchase by the general public. The invitation to subscribe shares is typically limited to a select group of investors who have a pre-existing relationship with the company.

The correct answer is Both (a) & (b). The common seal of a company should have both the company's name and words in the seal. This is important for legal and official purposes, as the seal is used to authenticate documents and transactions on behalf of the company. Including both the company's name and words in the seal ensures that it accurately represents the company and can be easily identified as the official seal of the company.

Private companies must have their own Articles of Association because they are not publicly traded and are usually owned and controlled by a small group of individuals or a single entity. The Articles of Association outline the rules and regulations that govern the internal affairs of the company, including the rights and responsibilities of shareholders, directors, and other stakeholders. This document is crucial for private companies to establish their operating procedures, decision-making processes, and to protect the interests of their owners. Public companies, on the other hand, have different regulatory requirements and are governed by their own set of laws and regulations.

The document that outlines the fundamental details of a company, such as its name, objectives, and share capital, is called the memorandum. It serves as a charter or constitution for the company, providing a framework for its operations and defining its scope and purpose. The memorandum is a crucial legal document that must be filed during the company's formation and is often referred to as the "charter" as it sets out the company's structure and rules.

The business operation clause is not included in the memorandum of association. The memorandum of association typically includes clauses related to the name of the company and its registration details, but it does not usually include specific clauses related to the day-to-day operations of the business. These operational details are usually covered in the articles of association or other internal documents of the company.

A public company should have not less than 51% of the paid-up capital held by both the State Government and the Central Government. This ensures that the government has a majority stake in the company, allowing them to have control and influence over its operations and decision-making processes. By having both the State and Central Government as major shareholders, the company is likely to be subject to regulations and policies set by the government, which can impact its functioning and strategic direction.

A holding company is a company that has control over another company or multiple companies. It typically owns a significant portion of the voting shares or has the power to appoint the majority of the board of directors in the subsidiary company. The holding company's primary purpose is to control and manage its subsidiaries, often for strategic or financial reasons. By having control over the subsidiary company, the holding company can influence its operations, decision-making, and overall direction. Therefore, the correct answer for the given question is "Holding company."

The property of the company belongs to the company itself. As a separate legal entity, the company has ownership over its assets, including property. The members of the company and the shareholders may have certain rights and interests in the company, but they do not have direct ownership of the company's property.

The Articles of Association contain the rules and regulations for the internal management of a company. They outline the responsibilities and powers of the directors and the shareholders, as well as the procedures for decision-making and conducting meetings. The Articles of Association are a legal document that governs how the company operates and ensures that all members are aware of their rights and obligations within the organization.

The correct answer is Memorandum. The memorandum of a company is a legal document that defines the company's relationship with the outside world and the public. It contains important information about the company's objectives, powers, and limitations. It serves as a guide for the company's activities and helps in establishing transparency and accountability in its dealings with stakeholders. The memorandum is a crucial document that outlines the fundamental principles and rules that govern the company's interactions with the public.

The official signature of a company is commonly referred to as a seal. A seal is a unique symbol or mark that represents the authenticity and authority of the company. It is often used to authenticate important documents and contracts, indicating that they have been legally approved and verified by the company. The use of a seal adds a level of formality and credibility to the company's official correspondence and transactions.

The Memorandum of Association typically consists of six clauses. These clauses outline the fundamental details of a company, including its name, registered office, objectives, liability of members, share capital, and association clause. Each clause serves a specific purpose and provides important information about the company's structure and operations.