Meaning and definition of company
Company Is the most popular form of business organization. An increase in the size and volume of business has made it more difficult for a sole trader or partnership firm to run their business effectively because of lack of resources and technical know-how. Further these two forms of business suffer from unlimited liability as well as absence of continuity of existence. in order to remove these limitations, a new form of business is developed called a “joint stock company”. A joint stock company is commonly known as “company” or a “corporation.”
A company in the common language is a group of people or persons associated together for some common purpose voluntarily. It is an artificial being, invisible, intangible and exiting only in contemplation of law. And in Nepal, companies are governed by Nepal company act,2053B.S. thus, law can create it and alone dissolve it.
A company is a voluntary of the persons formed for the purpose of some business for profit with common capital, divisible into transferability shares, possessing a corporate legal entity and a common seal. it is created by process of law and can be put to an end only by a process of law. It collect capital by issuing shares to promoters and general public Share of public limited company is easily transferable from one person to another persons. The person who contribute money and form the company are called the members of shareholders. The company is managed by the group of members is called ‘board of directors’ elected by the members of shareholders. company is a voluntary association of persons who contribute the work for the profit or who contributes money or money’s worth to a stock and employee for various purpose.
In conclusion, company is the association of members or persons of common interest, a separate legal existence incorporated according to the law, capital divided into transferable share s having perpetual existence and common seal.
The limitation of sole trading concern and partnership firms of organization gave birth to joint stock company. Their two important limitations were limited liability and unlimited liability. Unlimited liability discourages people to invest more, even if they had the capacity of acquiring huge sum of capital. this form is called joint stock company. thus, joint stock company has involved out of the sole trading and partnership of the business organization. joint stock company is recognized by law as an artificial person having perpetual, continuous, and uninterrupted existence. in joint stock company the member may go or come but the company will run for ever. Transferability of shares of the company gives perpetual succession to it. A company is owners by the share holders and managed by the directors, elected by the share holders of the company.
joint stock company is a volu
ntary association of individuals for profit, having a capital divided into a transferable shares, the ownership of which is the condition of membership. Company is the artificial person recognized by the law with the particular name, a common seal, a common capital comprising transferable shares of fixed value carrying limited liability and having a perpetual succession.
Types of joint stock company:
All types of company and the business has different types. here the classification are described:
the companies are classified in the following way:
1. according to corporation
2. According to liability.
3. According to numbers of members.
According to corporation:
According to incorporation the company can be divided into following three categories:
chartered company:
this types of company are incorporate under royal charter issued by king or head of the state.Under the charter,certain exclusive rights and privilege are granted to the company for under taking certain commercial activities. the East India company, The chartered bank of india and the Australia were incorporated under charter these companies are longer formed in any country
statutory companies:
these companies are formed under the special act o parliament. A parliament passes special act to form such company .in this act all the rights, power and responsibilities are clearly defined . when companies requires the special rights and power these type of company are established. Generally, companies for public utility services are formed.
register company:
In general companies are established under the company act of the country that are implemented or the country concerned. These types of company which have to be registered before starting them in the company register office under some act and rules is called the register company: The Act contains the provisions with regard to establishment, management, dissolution
A company in the common language is a group of people or persons associated together for some common purpose voluntarily. It is an artificial being, invisible, intangible and exiting only in contemplation of law. And in Nepal, companies are governed by Nepal company act,2053B.S. thus, law can create it and alone dissolve it.
A company is a voluntary of the persons formed for the purpose of some business for profit with common capital, divisible into transferability shares, possessing a corporate legal entity and a common seal. it is created by process of law and can be put to an end only by a process of law. It collect capital by issuing shares to promoters and general public Share of public limited company is easily transferable from one person to another persons. The person who contribute money and form the company are called the members of shareholders. The company is managed by the group of members is called ‘board of directors’ elected by the members of shareholders. company is a voluntary association of persons who contribute the work for the profit or who contributes money or money’s worth to a stock and employee for various purpose.
In conclusion, company is the association of members or persons of common interest, a separate legal existence incorporated according to the law, capital divided into transferable share s having perpetual existence and common seal.
The limitation of sole trading concern and partnership firms of organization gave birth to joint stock company. Their two important limitations were limited liability and unlimited liability. Unlimited liability discourages people to invest more, even if they had the capacity of acquiring huge sum of capital. this form is called joint stock company. thus, joint stock company has involved out of the sole trading and partnership of the business organization. joint stock company is recognized by law as an artificial person having perpetual, continuous, and uninterrupted existence. in joint stock company the member may go or come but the company will run for ever. Transferability of shares of the company gives perpetual succession to it. A company is owners by the share holders and managed by the directors, elected by the share holders of the company.
joint stock company is a volu
ntary association of individuals for profit, having a capital divided into a transferable shares, the ownership of which is the condition of membership. Company is the artificial person recognized by the law with the particular name, a common seal, a common capital comprising transferable shares of fixed value carrying limited liability and having a perpetual succession.Types of joint stock company:
All types of company and the business has different types. here the classification are described:
the companies are classified in the following way:
1. according to corporation
2. According to liability.
3. According to numbers of members.
According to corporation:
According to incorporation the company can be divided into following three categories:
chartered company:
this types of company are incorporate under royal charter issued by king or head of the state.Under the charter,certain exclusive rights and privilege are granted to the company for under taking certain commercial activities. the East India company, The chartered bank of india and the Australia were incorporated under charter these companies are longer formed in any country
statutory companies:
these companies are formed under the special act o parliament. A parliament passes special act to form such company .in this act all the rights, power and responsibilities are clearly defined . when companies requires the special rights and power these type of company are established. Generally, companies for public utility services are formed.
register company:
In general companies are established under the company act of the country that are implemented or the country concerned. These types of company which have to be registered before starting them in the company register office under some act and rules is called the register company: The Act contains the provisions with regard to establishment, management, dissolution
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