The word ‘company’ derived from the Latin word ‘com’ i.e. with or together and ‘panis’ i.e. bread. Originally the word referred to an association of persons or merchant men discussing matters and taking food together. It denotes a group of persons and the effect of registration under the Companies Act is that such group becomes a corporate body having perpetual succession and a common seal. The term ‘company’ is defined in Section 2(10). The definition only says that a company means a company as defined in Section 3 of the Companies Act. Section 3 further explains the meaning of expression ‘company’, ‘existing company’, ‘private company’ and ‘public company’. Apart from these categories, the different kinds of company are holding company, subsidiary company, foreign company and companies which are limited by guarantee and lastly an unlimited company. All these have already been discussed in the Common Proficiency Test Study Material. For their understanding, students can refer it.
CAclubindia
