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REVISION SERIES FOR COMPANY LAW FOR 2019 1
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SHORT QUESTIONS
- CORPORATE LEGAL FRAMEWORK
- DR. SAHSHI AGGARWAL
• MEANING OF COMPANY
• THE WORD COMPANY HAS NO
STRICT OR TECHNICAL OR LEGAL MEANING
• A COMPANY IN THE NORMAL
SENSE MEANS AN ASSOCIATION OF PERSONS UNITED FOR A COMMON OBJECT
• LORD JUSTICE LINDLEY :
1.
A COMPANY IS AN
ASSOCIATION OF MANY PERSONS
2.
WHO CONTRIBUTED MONEY OR MONEY’S WORTH
3.
TO A COMMON STOCK
4.
EMPLOYED FOR A COMMON PURPOSE AND WHO SHARES THE PROFIT
OR LOSS
5.
THE COMMON STOCK SO CONTRIBUTED IS DENOTED IN MONEY AND
ITS CAPITAL OF THE COMPANY
6.
THE PERSON WHO CONTRIBUTE IT TO WHOM IT BELONGS ARE
MEMBERS
7.
THE PROPORTION OF CAPITAL TO WHICH EACH MEMBER IS
ENTITLED IS HIS SHARE
8.
SHARES ARE ALWAYS TRANSFERABLE ALTHOUGH THE RIGHT TO
TRANSFER IS OFTEN MORE OR LESS RESTRICTED
