COMPANY LAW

Chapter – 1 : Introduction & History of Company Law in India                    9-20
1.1 Early History 9
1.2 History and Introduction to the Companies Act, 2013                                   10
1.3 Salient features of Companies Act, 2013
[Deviations from the Companies Act, 1956]                                                  11
1.4 Companies (Amendment) Act, 2015 – Key Highlight                                     16
1.5 Quick Revision                                                                                               19

Chapter – 2 : Meaning and Nature of a Company                                                21-38
2.1 Meaning of a Company                                                                                      21
2.2 Definition of Company 21
2.3 Characteristic features of a Company 22
2.4 Company Vis-a-Vis Other Forms of Business 29
2.5 Doctrine of Lifting of or Piercing the Corporate Veil 32
2.6 Quick Revision 37

Chapter – 3 : Formation and Incorporation of Company                                         39-52
3.1 Promotion of a company 39
3.2 Registration/Incorporation of A Company 41
3.3 Effect of certificate of incorporation 47
3.4 Commencement of Business 47
3.5 Advantages and Disadvantages of a Company or Advantages of Incorporation 47
3.6 Disadvantages of a Company 49
3.7 Quick Revision 51

Chapter – 4 : Kinds of Companies                                                                            53-87
4.1 Kinds of Companies 53
4.2 Companies may also be classified as 54
4.3 Private Company 54
4.4 One Person Company (OPC) 57
4.5 Small Company 62
4.6 Public Company [Sec 2 (71)] 63
4.7 Limited Company [Section 3(2)] 66
4.8 Unlimited Company 67

4.9 Association Not for Profit (Section 8) 67
4.10 Government Companies [Section 2 (45)] 70
4.11 Foreign Companies [Section 2 (42)] 72
4.12 Holding Companies and Subsidiary Companies (On the Basis of Control) 75
4.13 Producer Companies 77
4.14 Dormant Companies [section 455 (1)] 79
4.15 Public Financial Institutions [Section 2 (72)] 80
4.16 Statutory Corporations 81
4.17 Illegal Association or Unlawful Association 83
4.18 Quick Revision 85

Chapter – 5 : Memorandum of Association and Article of Association                       88-120
5.1 Memorandum of Association 88
5.2 Form of Memorandum of Association 89
5.3 Contents of Memorandum [Section 4(1)] 89
5.4 Alteration of Memorandum of Association [Section 13 (1)] 100
5.5 Articles of Association 106
5.6 Binding force of Memorandum and Articles (Legal effect of
Memorandum and Articles) 111
5.7 Distinction between Memorandum of Association and the Articles of Association 113
5.8 Relation of Articles and Memorandum 113
5.9 Doctrine of Constructive Notice of Memorandum and Articles 114
5.10 Constructive Notice of Memorandum and Articles 115
5.11 Doctrine of Indoor Management 116
5.12 Exceptions to Doctrine of Indoor Management 116
5.13 Quick Revision 118

Chapter – 6 : Prospectus                                            121-137
6.1 Meaning and Definition of Prospectus 121
6.2 Prospectus must be “Issued to the Public” 123
6.3 When Prospectus need not be Issued 124
6.4 Contents of a Prospectus [Section 26] 124
6.5 Expert Opinion in Prospectus [Section 26(5)] 127
6.6 Registration of Prospectus [Section 26 (4), (6) and (7)] 128
6.7 Variation in terms of Contract or Objects Stated in Prospectus [Section 27] 129
6.8 Advertisement of Prospectus [Section 30) 129
6.9 Mis-statement or Untrue Statement in Prospectus and their Consequences 129

6.10 Golden Rule for framing of Prospectus 135
6.11 Quick Revision 136

Chapter – 7 : Membership in a Company                                      138-149
7.1 Who are Members? 138
7.2 Definition of Member [Section 2 (55)] 139
7.3 Member v. Shareholder 139
7.4 Modes of acquiring Membership 140
7.5 Who can become a Member? 140
7.6 Joint Members 143
7.7 Minimum Number of Members 143
7.8 Cessation of membership 143
7.9 Rights of Members 144
7.10 Liability of Members 146
7.11 Register of Members (Section 88) 146
7.12 Expulsion of a Member 147
7.13 Quick Revision 148

Chapter – 8 : Company Secretary                                               150-159
8.1 Definition of Company Secretary 150
8.2 Role and need of company secretary under Companies Act 2013 150
8.3 Appointment of Company Secretary as per Companies Act, 2013 152
8.4 Position of company secretary 154
8.5 Rights of company secretary 154
8.6 Duties of secretary 155
8.7 Liabilities of company secretary 156

Chapter – 9 : Company Management                                               160-182
9.1 Meaning of a Director 160
9.2 Board of Directors 161
9.3 Women Director & Her Appointment on the Board 161
9.4 Who may be appointed as a Director? 162
9.5 Qualifications for Directors 162
9.6 Disqualifications of a Director 162
9.7 Legal position of directors 163
9.8 Appointment of Directors 166
9.9 Removal of Director 169

9.10 Powers of the Board of Directors 170
9.11 Duties of Directors 172
9.12 Managing Director and other Key Managerial Personnel 175
9.13 Manager 180
9.14 Whole Time Director 181
9.15 Quick Revision 181

Chapter – 10 : Company Meetings                                            183-206
10.1 Introduction 183
10.2 Exceptional Circumstances of One Man Meeting 183
10.3 Requisites of a Valid Meeting 184
10.4 Kinds of meetings of a company 194
10.5 Member’s Meetings 194
10.6 Meetings of the Board : Section 173 200
10.7 Quick Revision 203

Chapter – 11 : Winding up of Companies                              207-229
11.1 Introduction 207
11.2 Difference between Winding Up and Dissolution 207
11.3 Modes of Winding Up [Section 270 (1)] 208
11.4 Winding up by Tribunal (Section 271] 208
11.5 Voluntary winding up 219
11.6 Declaration of Solvency [Sec.305] 220
11.7 Meeting of Creditors [Sec.306] 221
11.8 Consequences of Voluntary Winding up 222
11.9 Company Liquidators and their Appointments [Section 275] 222
11.10 Removal and Replacement of Liquidator [Section 276] 223
11.11 Power, Duties & Liabilities of Liquidator 224
11.12 Official Liquidator 226
11.13 Quick Revision 228

Solved Objective Questions on Companies Act, 2013                                    230-247