According to the companies ordinance 1984 public limited company means a company, which is held by its articles of association. The whole process of company formation can be divided into four stages as given below. Promotion of a company promotion is the first stage in the formation of a company. A company is a stable form of business organization. Incorporation of a company notes company law bbamantra. The revision notes help you revise the whole chapter in minutes. A company thus has legal rights and obligations in the same way that a natural person does. Ncert solutions class 11 business studies chapter 7 formation of a company, pdf free to download. The first stage in the formation of a company is promotion. Formation of a company corporate law notes hindi formation of a company corporate law notes hindi.
The formation of a company part 1 law llb lecture notes. It involves conceiving a business opportunity and taking an initiative to form a company so that practical shape can be given to exploiting the available business opportunity. Ncert class 11 business studies formation of a company. Cbse class 11 business studies revision notes chapter 7 sources of business finance class 11 notes business studies. After reading this article you will to learn about. One of the first steps in the formation of a company is to prepare a document called the memorandum of association hereinafter referred to as moa. Capital formation means increasing the stock of real capital in a country. Formation of company there are two stages in the formation of private company, promotion and incorporation. Types of companies formation of a company business. The company will be allocated a company number by the registrar. Company law page 4 of 84 limited and unlimited companies.
A private company which is a subsidiary of a public company is deemed to be a public company. Share may be defined as an interest in the company entitling the owner thereof to receive proportionate part of the profits, if any, and, at the same. Free pdf download of ncert solutions for class 11 business studies chapter 7 formation of a company solved by expert teachers as per ncert cbse book guidelines. Section 3 defines a limited and an unlimited company. The steps involved in the formation of a company are. Its life does not depend upon the death, insolvency or retirement of any or all shareholder s or director s. All the provisions of companies act, 1956 as applicable to public company are also applicable to private limited company except the provisions relating to the basic structure of the private limited. Ncert solutions for class 11 business studies chapter 7. Submit application in form inc32 spice to get license of a new company under section 81 and in form no. A public company has to under go capital subscription stage and to the get certificate of commencement of business, to begin operation. For convenience the whole process of company formation may be divided into the following four stages. Com 6th sem company formation in the formation of a public limited company having share capital, mainly four stages are involved namely.
Introduction one of the first steps in the formation of a company is to prepare a document called the memorandum of association hereinafte. Limited and unlimited companies 1a company is a limited company if the liability of its members is limited by its constitution. The company is managed by the representatives of shareholders called board of directors. Hi fellow law students, here i am sharing lecture notes in ebook format pdf for the subject company law for llb and ba. The procedure for the incorporation of a company can be understood through the following steps selection of the type of a companythe first step for incorporation of a company is to select the type of company the promoters or owners wish to form i. Business finance it refers to capital funds and credit funds invested in the business according to bo wheeler, finance is that business activity which is concerned with the acquisition and conservation of capital fund in meeting the financial needs and over all objectives of business enterprise 2. The promoter has to fulfill many legal formalities which are. Ordinary shares of 25p each fully paid 100, 8% irredeemable preference shares 40, retained earnings 1 april 20x0 16, revenue 224, purchases 128, administrative expenses 12,9 00 directors emoluments 3. Jul 23, 2012 formation of companies presented by niteen. Mar 14, 2019 the revision notes help you revise the whole chapter in minutes. As a result, the business becomes a distinct legal entity.
This chapter is incorporated with many concepts introduction to the topic formation of a company, promotion of a company, functions of a promoter, name clause, documents required to be submitted, articles of association, association clause, position of promoters, qualification of shares. Click on the respective units to download the sample copies for quality confirmation. Jul 06, 2019 5 formation of company in hindi, 6project on company formation, 7 formation of company in company law pdf, 8 formation of public company, 9 formation of a company class 11 notes pdf, 10business. Collectively, this will set down rules as to how the company is to be run. According to grettenberger, promotion means discovery of business opportunities and the subsequent organization of funds, property, management ability to run a business concern for the purpose of making profit there from. There are following four stages in the formation of the public company. The minimum number of its member is 7 and no maximum limit. Formation of joint stock company business studies class 11. Notes on section 8 of the companies act, 20 has been amended by the companies incorporation sixth amendment rules, 2019 dated 7 th june, 2019. All chapter wise questions with solutions to help you to revise complete syllabus. Formation of a company means bringing a company into existence and starting its business. Business studies notes kcse form 1 4 business notes. Inc12 for grant of license us 85 for existing companies with charitable objects etc. Jan 18, 2019 under the formation of a company act 20, it is assumed that every company has its memorandum documentation because it is also the charter of the company.
Nepal company act, 2063, a company refers to any company formed and registered under this act it is clear from the above definitions that a company is a voluntary association of a group of people willing to carry out a business for which the major part of the capital is collected by selling the shares or debentures to the general public. Kcse business studies summarized revision pdf notes. In other words, capital formation involves making of more capital goods such as machines, tools, factories, transport equipment, materials, electricity, etc. Class 11 business studies summary notes has key terms, overview of the all the chapters, important points to remember. Bachelor of business administration bba uploaded by.
One man company this is a company in which one man holds practically the whole of the share capital of the company, and in order to meet the statutory requirement of minimum number of members some dummy members. Each share holder is entitled to transfer his shares of ownership without the consent of other members. Forms of business organisation class 11 notes business. Ncert solutions for class 11 business studies formation of a. Sources of business finance class 11 notes business studies. A corporation is a business or organization formed by a group of people, and it has rights and liabilities separate from those of the individuals involved. You are faced with a blank sheet you wonder where to start to create your company. Copies of these textbooks may be downloaded and used as textbooks or for reference. Form 1 2 3 4 revision notes pdf, kcse form 1 2 3 4 notes pdf, kcse free set books guide pdf. Answer formation of a company is a complex activity, involving these stages which are as follows. The companys constitution the constitution of the company is found in a number of places. A company is a corporation an artificial person created by law.
From then on this number must appear on all company documentation. It also contains solved questions for the better grasp of the subject in an easy to download pdf file. Dec 18, 2019 formation of a company class 11 notes pdf formation of a company class 11 notes documents required for company formation new company formation formation of company assignment. If seen, the companys moa works to keep their external affairs in control while the articles of association aoa of the company works to keep control of the internal affairs of the company. Icsi house, 22, institutional area, lodi road, new delhi 110 003. All chapter wise questions with solutions to help you to revise complete syllabus and score more marks in your examinations. All exercise questions with solutions to help you to revise complete syllabus and score more marks in your examinations.
Formation of company there are two stages in the formation of private company. To receive study notes directly to your email, calltextwhatsapp 0724 962 477. The person who undertakes all these activities is a promoter. Sanjeev kumar singh, asst professor, mba department, vviet, mysuru. Promotion is the discovery of business opportunity and organization of funds, property and ability in business for the purpose of making profit. Promotion identification of business opportunities, analysis of its prospects and initiating steps to form a company is known as promotion of a company. Sep 10, 2017 legal formalities for the formation of a company. This pdf file for class 11 formation of joint stock company subjects business studies topic contains brief and concise notes for easy understanding of topics and quick learning.
Business studies class 11 notes is very important for stundents to revise the whole cbse syllabus in short period of time. Company law notes rohit natani cs, net, 9783110025 page 3 effects of incorporation section 34. The moa of the company contains the fundamental conditions upon which alone the company has been incorporated. Introduction, stages, and conclusion of formation of a company. To form private company and public company not having any share capital, first two stages are sufficient because, a private limited company can start its business.
A business enterprise does not come into existence. Stage in formation of a company assignment help homework. To register online tuitions on to clear your doubts. Notes on company and its formation grade 12 principles of. Com 6th sem company formation in the formation of a. Promotion is the first stage in the formation of a company. Definition of a company a company is a corporation an artificial person created by law. Company formation is the process of registering a business as a limited company at companies house. Formation of a company business studies class 11th business. Thus, it begins with somebody having discovered a potential business opportunity. Class 11 business studies chapter 7 formation of a company. This guide gives you the essential steps to follow for the formalities of creation. Free pdf download of ncert solutions for class 11 business studies chapter 7 formation of a company solved by expert teachers on as per ncert cbse book guidelines.
This chapter is incorporated with many concepts introduction to the topic formation of a company, promotion of a company, functions of a promoter, name clause, documents required to be submitted, articles of association, association clause, position of promoters, qualification of. Formation of public limited company business study notes. For making additions to the stock of capital, saving and. It comes into existence from the date of incorporation.
Companies and partnerships compared a a company can be created only by certain prescribed methods most. The process is also referred to as company incorporation and company registration. Very good notes on formation of a company business studies for class 11th business chapter 7 easy to understand page 1 of 1 notesgen is the no. Cbse class 11 business studies chapter 7 formation of a. Company is an artificial person created by law to carry on a business for the profit with distinct legal existence. Promotion is the discovery of business opportunity and organization of funds, property and ability. Revising notes in exam days is on of the best tips recommended by teachers during exam days.
When you incorporate a limited company, it becomes an individual person in the eyes of. Apr 17, 2016 formation of a public limited company. Formation of a company is a chapter that is outlined to explain about how is a company formed. He notes that formation of strategic alli ances consists of six stages. If you continue browsing the site, you agree to the use of cookies on this website. Members may come and go but the company can go on for ever. Class 11 business studies revision notes for chapter 7.
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