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Examine the following whether they are correct or incorrect along with reasons: (i) A company being an artificial person cannot own property and cannot sue or be sued. (ii) A private limited company must have a minimum of two members, while a public limited company must have at least seven members.?
Most Upvoted Answer
Examine the following whether they are correct or incorrect along with...
(i) Incorrect - A company being an artificial person can own property and can sue or be sued.
Explanation:
- A company is recognized as a legal entity and enjoys legal personality, meaning it can enter into contracts, own property, and sue or be sued in its own name.
- The concept of a company as a legal entity is recognized in various laws, including Company Law, Contract Law, and Property Law.
- Thus, a company can own assets like land, buildings, machinery, and intellectual property rights, and can also bring legal action against others or be subject to legal action by others.
(ii) Correct - A private limited company must have a minimum of two members, while a public limited company must have at least seven members.
Explanation:
- The Companies Act, 2013 lays down the minimum and maximum number of members for different types of companies.
- A private limited company is required to have a minimum of two members and a maximum of 200 members.
- A public limited company, on the other hand, must have a minimum of seven members, with no limit on the maximum number of members.
- The rationale behind this difference is that private limited companies are intended for small and closely held businesses, while public limited companies are meant for larger businesses that need to raise capital from the public.
- The Companies Act also specifies other requirements for forming and running a company, such as the need for a registered office, a director, and a company secretary.
Explanation:
- A company is recognized as a legal entity and enjoys legal personality, meaning it can enter into contracts, own property, and sue or be sued in its own name.
- The concept of a company as a legal entity is recognized in various laws, including Company Law, Contract Law, and Property Law.
- Thus, a company can own assets like land, buildings, machinery, and intellectual property rights, and can also bring legal action against others or be subject to legal action by others.
(ii) Correct - A private limited company must have a minimum of two members, while a public limited company must have at least seven members.
Explanation:
- The Companies Act, 2013 lays down the minimum and maximum number of members for different types of companies.
- A private limited company is required to have a minimum of two members and a maximum of 200 members.
- A public limited company, on the other hand, must have a minimum of seven members, with no limit on the maximum number of members.
- The rationale behind this difference is that private limited companies are intended for small and closely held businesses, while public limited companies are meant for larger businesses that need to raise capital from the public.
- The Companies Act also specifies other requirements for forming and running a company, such as the need for a registered office, a director, and a company secretary.
Community Answer
Examine the following whether they are correct or incorrect along with...
I) incorrect
Company being an artificial person can own property in its own name and can sue or be sued becoz it has got legal existence or it is a person recognised in the eyes of law..
ii) Correct
Because minimum number of members in pvt ltd company is 2 and that of in the public ltd co. it is 7
Company being an artificial person can own property in its own name and can sue or be sued becoz it has got legal existence or it is a person recognised in the eyes of law..
ii) Correct
Because minimum number of members in pvt ltd company is 2 and that of in the public ltd co. it is 7
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Examine the following whether they are correct or incorrect along with reasons: (i) A company being an artificial person cannot own property and cannot sue or be sued. (ii) A private limited company must have a minimum of two members, while a public limited company must have at least seven members.?
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Examine the following whether they are correct or incorrect along with reasons: (i) A company being an artificial person cannot own property and cannot sue or be sued. (ii) A private limited company must have a minimum of two members, while a public limited company must have at least seven members.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Examine the following whether they are correct or incorrect along with reasons: (i) A company being an artificial person cannot own property and cannot sue or be sued. (ii) A private limited company must have a minimum of two members, while a public limited company must have at least seven members.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Examine the following whether they are correct or incorrect along with reasons: (i) A company being an artificial person cannot own property and cannot sue or be sued. (ii) A private limited company must have a minimum of two members, while a public limited company must have at least seven members.?.
Examine the following whether they are correct or incorrect along with reasons: (i) A company being an artificial person cannot own property and cannot sue or be sued. (ii) A private limited company must have a minimum of two members, while a public limited company must have at least seven members.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Examine the following whether they are correct or incorrect along with reasons: (i) A company being an artificial person cannot own property and cannot sue or be sued. (ii) A private limited company must have a minimum of two members, while a public limited company must have at least seven members.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Examine the following whether they are correct or incorrect along with reasons: (i) A company being an artificial person cannot own property and cannot sue or be sued. (ii) A private limited company must have a minimum of two members, while a public limited company must have at least seven members.?.
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