Learning Outcomes of The Companies Act, 2013

These flashcards cover key concepts and definitions related to the Companies Act, 2013, focusing on essential terms and principles of corporate law.

Company form of Business Organisation

A legal entity that is distinct from its members, characterized by limited liability and perpetual succession.

Corporate veil theory

The legal concept that separates the identity of a corporation from its shareholders, protecting the latter from being personally liable for the company's debts.

Perpetual succession

The characteristic of a company that allows it to continue existing despite changes in ownership or the death of shareholders.

Limited liability

A legal structure in which a company's shareholders are only liable for the amount they invested, protecting their personal assets.

Artificial juridical person

A legal entity that is created by law and operates as a person, having rights and responsibilities, but is not a natural person.

Memorandum of Association (MOA)

A document that describes the fundamental conditions upon which a company is incorporated, defining its scope and objectives.

Articles of Association (AOA)

A document that contains the regulations for the management of a company, guiding its internal affairs.

Registered Office

The official address of a company where official communications are sent and where records are maintained.

Incorporation

The process by which a company is legally registered and becomes a separate legal entity.

Lifting the corporate veil

A legal action to disregard the company's separate identity, holding shareholders or directors liable for the company's actions.

Types of companies

Companies can be classified based on liability (limited or unlimited), number of members (private or public), and control (holding or subsidiary companies).

Limited by shares

A type of company where the liability of its members is limited to the amount unpaid on their shares.

One Person Company (OPC)

A company type that is allowed to have only one member, encouraging entrepreneurship and simplifying business operations.

Small Company

A private company with a paid-up share capital not exceeding 4 crores and turnover not exceeding40 crores.

Public Company

A company that is not a private company and has to adhere to stricter regulations regarding share issuance and number of members.

Doctrine of Ultra Vires

A legal principle that pronounces acts outside the scope of a company's stated objectives as void.

Doctrine of Indoor Management

A protection that allows outsiders to assume that internal processes and procedures relating to contracts have been properly followed.

Common seal

An official seal of a company used to execute documents and signify corporate approval.

Promoter

A person who takes initiative to form a company, responsible for its incorporation and compliance with legal requirements.