CA Foundation Exam > CA Foundation Questions > Examine the following whether they are correc...
Start Learning for Free
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
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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.?
Question Description
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.?.
Solutions 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.? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 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.? defined & explained in the simplest way possible. Besides giving the explanation of
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.?, a detailed solution 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.? has been provided alongside types of 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.? theory, EduRev gives you an
ample number of questions to practice 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.? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup