What is the limit on the maximum number of members in case of a private company as per Companies Act, 2013?
200 members
First proviso of Sec 2(68) of the Companies Act, 2013, explains that if two or more persons jointly holds any number of shares in a private company, those two or more persons will be deemed as one person only while counting the maximum limit of 200 members, irrespective of the number of shares held by them together or …
What is the amount of minimum subscription as per Companies Act?
For companies having a capital of less than one lakh rupees, the fees payable should be two hundred rupees. In the case of companies whose capital is more than one lakh but less than one crore rupees, the fees payable ranges from three hundred to five hundred rupees.
How many types of share capital can a company have?
two types
The two types of share capital are common stock and preferred stock. Companies that issue ownership shares in exchange for capital are called joint stock companies.
What is the limit of minimum subscription?
90%
This is called the ‘minimum subscription’. The limit of minimum subscription is 90% of the size of the issue.
What is percentage of minimum subscription of issued capital?
Securities and Exchange Board of India (SEBI), has prescribed that a company must receive at least 90% subscription of the Issued Share Capital before making any allotment or shares or debentures to the public.
What is the maximum capital a company can issue to the public?
The authorised capital of a company is the maximum amount of share capital for which shares can be issued by a company. The initial authorised capital of the Company is mentioned in the Memorandum of Association of the Company and is usually Rs. 1 lakh.
What is the limit of members in case of a private company 1?
200
Members: You can start a private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013.
How many partners can a company have?
According to section 11 of the Companies Act, 1956 a partnership for a banking business must not have more than 10 partners and for other business it must not exceed 20.
What is the maximum number of members can become the members of private company?
Members: You can start a private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013.
When 90% of the issued shares are subscribed by the public it is known as over subscription of shares?
Under-Subscription: In case when share are issued by the company and the number of shares applied by the public is lesser than the number of shares issued this is called the situation of under-subscription. As per the Comprise Act the minimum subscription is 90% of the shares issued by the company.
What is the size of minimum subscription As per Sebi?
If the company does not receive applications for at least 90% of the issued amount from public subscription within 120 days from the date of the opening of the issue the company has to refund the amount of subscription. This is called Minimum Subscription.
What is section 81 of the Companies Act?
Section 81 contains provisions on “Further issue of capital”, and provide a statutory right of existing shareholders to have offered the new shares. Thus, this section gives a Company’s existing equity shareholders a pre-emptive right to get the further shares
What is the difference between section 81 (1) and Section 81 (1A)?
Whereas Section 81 (1A) provides for relaxation from Section 81 (1).It provides that further shares may be offered to any person other than existing shareholders. 30 December 2011 Thanks mitesh so much for your explanation in simple language.
What are the sections of the Companies Act?
This Act may be cited as the Companies Act. 2. This Act is divided into Parts, Divisions and Subdivisions as follows: sections 1-7A. sections 8-16. sections 17-22.
How is the period of one year specified in Section 81 calculated?
The period of one year specified in sub-section (1) is to be counted from the date on which the company has allotted any shares for the first time. In your case Section 81 is not applicable.