Company is an association

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 A company is an association of a number of persons, formed for some common purpose and registered according to the law relating to companies. Section 3(1)(i) of the Companies Act, 1956 states that a company means, “a company formed and registered under this Act or an existing company”. According to Lord Justice Lindley, “By a company is meant an association of many persons who contribute money or money’s worth to a common stock and employ it for a common purpose. The common stock so contributed is denoted in money and is the capital of the company. The person who contribute it or to whom it belongs are members. The proportion of capital to which each member is entitled is his share”. A company, formed and registered under the Company Act, is regarded by law as a single person, having specified rights and obligations. The law confers on a company a distinct legal personality, with perpetual succession and a common seal. Objective of this paper The objective of this paper is to grasp, assimilate and comprehend the application of the Corporate Business Law being practiced and its impact on day to day operations of the Business in respect of the Contract act. In this paper we will discuss how to start a new public bank limited company hypothetically specifying its name, registration procedure in detail, the objectives, and legal formalities of the forming a company.  According to the nature of the business, we will also have to make an offer and enter into different contracts with any 2 other groups   through invitation following all the essential elements as stipulated under the contract act 1872. The Essential steps for the formation of a company Before a company can be formed the following steps must be taken:

  1. The Memo and the Article must be prepared. These two documents must be filed when the application is made for the registration and incorporation of the company. The Companies Act lays down rules regarding the preparation of the memorandum. Schedule I to the Act of 1956 contains four model forms for use in different cases.
  2. If it is proposed to have a paid up capital of more than Rs 3 crores, sanction of the central Government must be obtained under the capital issue (Control) Act, 1956.
  3. If the company to be formed intends to participate in an industry which is included in the scheduled annexed to the industries (Development and Regulation) Act, 1951, a license must be obtained under the Act.
  4. The company must be registered in accordance with the provision of the companies Act , 1956 and a certificate of incorporation must be obtained.
  5. The prospectus or the statement in lieu of prospectus must be issued and registered with the registrar.
  6. The minimum subscription must be raised and therefore the allotment of shares must be made.
  7. The certificate for the commencement of business must be obtained from the Registrar.

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