Commerce · Class 12 Commerce
Ch 26Companies Act, 2013 — Class 12 Commerce, concept-first.
Company law is the branch of law that governs how a business can organise itself as a company, how such a company is formed, managed, and, if needed, wound up. In India, the principal statute governing companies today is the Companies Act, 2013, administered by the Ministry of Corporate Affairs (MCA), which replaced th…
Key concepts
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Meaning and Features of a Company
A company, under Section 2(20) of the Companies Act, 2013, is a company incorporated under this Act or an earlier company law — it comes into existence only through formal registration, not merely through size or number…
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Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning of a Company and the Companies Act, 2013
Company law is the branch of law that governs how a business can organise itself as a company, how such a company is formed, managed, and, if needed, wound up.
Features of a Company
Once a business is incorporated as a company, it acquires a distinct bundle of legal characteristics that sets it apart from a sole proprietorship or a partnership firm.
Kinds of Companies
The Companies Act, 2013 classifies companies mainly by the number and nature of their members, and by ownership pattern.
Memorandum of Association
The Memorandum of Association (MOA), dealt with in Section 4 of the Companies Act, 2013, is the company's foundational charter.
Articles of Association
The Articles of Association (AOA), dealt with in Section 5 of the Companies Act, 2013, are the company's internal rule-book.
Incorporation of a Company
Incorporation, governed by Section 7 of the Companies Act, 2013, is the formal legal act that brings a company into existence as a separate legal person.
Prospectus — Raising Capital from the Public
Section 23 of the Companies Act, 2013 lays down how a company may raise its share capital. A public company may raise capital in either of two ways: a public offer, by issuing a prospectus inviting th…
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1Under Section 2(11) of the Companies Act, 2013, the term 'body corporate' excludes which of the following? (a) A private company (b) A publi…Free
- Q2As per Section 2(68) of the Companies Act, 2013, what is the maximum number of members a private company can have (excluding present and pas…Free
- Q3Which document is filed BEFORE the subscription list of a public issue opens and deliberately does not state the final issue price? (a) Shel…Preview
- Q4Section 2(62) of the Companies Act, 2013 introduced which of the following, for the first time, as a distinct category of company? (a) Gover…Preview
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- Q5What is meant by a 'Government Company' under the Companies Act, 2013?Free
- Q6Distinguish, in brief, between a Holding Company and a Subsidiary Company.Free
- Q7What is meant by the 'doctrine of ultra vires' in relation to the Memorandum of Association?Preview
- Q8What declaration must a company having a share capital file under Section 10A before it can commence business, and within what time limit?Preview
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- Q9Distinguish between the Memorandum of Association and the Articles of Association of a company.Free
- Q10Explain the procedure for the incorporation of a company under the Companies Act, 2013.Preview
- Q11What is a Prospectus? Explain the matters that must be stated in it, and briefly distinguish between a Shelf Prospectus and a Red Herring Pr…Preview