Company classification

Mode of incorporation Number of

members
Control Ownership Nationality

Chartered
monarch.
The East India Company
The Bank of England.
Wide Powers.
Dnt exist in india.
Private
Max 50 members.
Share transferring rights
restricted.
Price share decided by
director.
Min members=2.
Pvt aft d name.
Holding
One company controls other.
3 ways:
Holding >50% normal value.
Holding >50% voting rights.
Right to appoint majority of
directors.
Affairs of both companies
managed by holding
company.
Government
not less than 51% of the paid
up capital is held by the
government.
company subsidiary to a
government company.
Auditors appointed by govt.
Annual report placed bfr
Both parliament.
Indian
Registered in India.
Registered office in India
Members nationality is
immaterial.
Statutory
RBI.
Derive power frm act.
NO MOA & AOA.
Meet social need, not profit.
Companies act apply to it.
Public
not restrict the transfer
of shares.
no restriction on the
maximum number of
the members.
invites the general
public.
Subsidiary
Control is exercised by
holding company.

Non-government
other companies, except the
Government Companies, are
called non-government
companies.
do not satisfy the
characteristics of a
government company.

Foreign
Incorporated outside India.
Business placed in India.
Registered
Under companies act 1956.
Registered companies.
Most popular mode of
incorporation.
3 types:
Limited by share.
Limited by guarantee.
Unlimited company.


Points of distinction between promissory note and bill of exchange:
Number of parties
Promise and order
maker of PN is the debtor, drawer of bill is the creditor
Nature of liability for PN is primary and absolute and is secondary and conditional for the later
The maker of the note cannot be the payee
PN requires no Acceptance as it is signed bythe person who is liable to pay. A bill must be accepted before it is
presented for payment
Notice of dishonor: notice of dishonor required in case of bill to all the persons liable to pay (drawer and endorsers).
No notice required for PN
Distinction between cheque and a bill of exchange:
Instrument drawn on: Bill drawn on any person including banker whereas cheque drawn only on banker
Acceptance required: bill must be accepted before drawee can be called upon to make the payment whereas
cheque requires no acceptance
When payable: Bill can have 3 days of grace whereas a cheque is always payable on demand
Crossing of instrument: cheque may be crossed but not a bill
Stamp
Endorsement:
When the maker or holder of the negotiable instrument signs the same, otherwise than as such maker, for purpose of
negotiation, on the back or face thereof or on a slip of paper annexed thereto, he is said to indorse the same
Kinds of Endorsement:
Blank or General (only signature, no name of endorsee)
Full or Special (signature of endorser + name of endorsee)
Restrictive (endorser by some words restricts rights of endorsee for further endorsements)
Partial (is invalid)
Conditional or Qualified ( endorser limits his liability by putting some condition)
Differences between a Public Company and a Private company
1. Minimum number : The minimum number of persons required to form a public company is 7. It is 2 in case of a private
company.
2. Maximum number : There is no restriction on maximum number of members in a public company, whereas the
maximum number cannot exceed 50 in a private company.
3. Number of directors. A public company must have at least 3 directors whereas a private company must have at least 2
directors (Sec. 252)
4. Restriction on appointment of directors. In the case of a public company, the directors must file with the Register a
consent to act as directors or sign an undertaking for their qualification shares. The directors of a private company need
not do so (Sec 266)
5. Restriction on invitation to subscribe for shares. A public company invites the general public to subscribe for the shares
or the debentures of the company. A private company by its Articles prohibits invitation to public to subscribe for its
shares.
6. Name of the Company : In a private company, the words Private Limited shall be added at the end of its name.
7. Issue of prospectus : Unlike a public company a private company is not expected to issue a prospectus or file a
statement in lieu of prospectus with the Registrar before allotting shares.
8. Transferability of Shares. In a public company, the shares are freely transferable (Sec. 82). In a private company the
right to transfer shares is restricted by Articles.
9. Quorum. If the Articles of a company do not provide for a larger quorum, 5 members personally present in the case of a
public company are quorum for a meeting of the company. It is 2 in the case of a private company (Sec. 174)
10. Managerial remuneration. Total managerial remuneration in a public company cannot exceed 11 per cent of the net
profits (Sec. 198). No such restriction applies to a private company.
11. Commencement of business. A private company may commence its business immediately after obtaining a certificate
of incorporation. A public company cannot commence its business until it is granted a Certificate of Commencement of
business.

WTO
Formation: 1st January 1995
Headquaters : Geneva, Switzerland
Membership: 159 member states. (95% of total world trade)
Official Languages: English, French, Spanish
Director-General: Roberto Azevedo (6th DG of WTO appointed on 1st Sept. 2013)
Staff: 630
Principles
Non-Discrimination











Levels of WTO
Highest Level Second Level Third Level Fourth Level
Ministerial conference

Meet at least every two year

It can make decision on all
matters under any of the
multilateral agreement.
General Council

The dispute settlement body

The trade policy review body
(TPRB)
Council for trade Goods

IPR and Service
Subsidiary bodies
Other committees
Trade and environment
Trade and development
Regional trade agreements
Balance of payments
restriction
Budget, Finance and
Administration etc..