Prepared by: Ms. Neha Rani
            Assistant Professor
          School of Business Studies
      Shobhit Institute of Engineering and Technology
         (Deemed to be University) Meerut
     Definition, characteristics and kinds of companies, steps in 
     formation of company. 
     Memorandum of association, articles of association and 
     prospectus. 
     Directors: appointment, power, duties and liabilities, meeting 
     and resolutions: types of meetings. Auditor: appointment, 
     rights and liabilities. Modes of winding up of a company
   Definition of a "Company"  
    A company is a "corporation" - an artificial 
    person created by law.  
    A human being is a "natural" person.  
    A company is a "legal" person.  
    A company thus has legal rights and obligations 
    in the same way that a natural person does. 
  According to Section 3(1) (i) and (ii) of the Companies 
  Act 1956, a company means, “A company formed and 
  registered under this Act or an existing company. An 
  existing company means a company formed and 
  registered under any of the former Companies Act. ”
  The Act provides the procedure of forming and 
  registering a company. Once registered or incorporated, 
  a company becomes a ‘body corporate’.
  A company may be defined as an incorporated 
  association which is an artificial person having a 
  separate legal entity, with a perpetual succession, a 
  common seal, a common capital comprised of 
  transferable shares and carrying limited liability.