Yes labor act applicable for a firms
Company Affairs CS
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“Company Affairs CS job interview preparation guide. Number of Company Affairs (CS) frequently asked questions(FAQs) asked in many Company Affairs CS interviews”
29 Company Affairs CS Questions And Answers
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A portion of company profits allocated by an employer, in good years, to an employee’s trust.
Contributions on behalf of each employee are expressed as a percentage of salary with 5% being common practice. If the profit-sharing plan is a qualified plan according to the IRS, employer contributions are tax deductible as a business expense. These contributions are not currently taxable to the employee; benefits are taxed at the time of distribution.
4⟩ 1 What is BRS? 2 Why do we prepare balance sheet? 3 What is trial balance? 4 What is mutual fund? 5 Why net profit shown liabilities side in balance sheet?
We do BRS when there arises a difference between the balances in the cashbook and passbook.
We prepare balance sheet to ascertain the financial position of business trail balances-to check dual entry of transactions arithmetically deferred revenue expenditure-that which spreads the benefit 4 a long time.
Net profit is a liability on part of business to pay to owner.
Personnel Finance company can be start under Companies Act,1956 as a NBFC Company, Fund Company, ABC Company etc.
The essential characteristics of a company are:
★ It is a voluntary association of persons.
★ It is a separate legal entity.
★ It has a common seal.
★ It has a perpetual succession.
★ It is created by law with limited liability.
A Practicing company secretary my filled his compliance
certificate in Form no. 66, when filing company's Annual
Returns. This certificate is compulsory for the companies
whose paid up capital exceeds Rs. 10 Lacs
A company is a subsidiary of a holding company, if a holding company controls the majority composition of its board of directors, having an object to control the management of the subsidiary or that other company that is the holding company holds the majority of its shares or the holding company's subsidiary has its own subsidiary, it become the subsidiary of the first mentioned company on the first holding company.
Registered companies are categorized on the basis of liability and number of members. On the basis of liability companies can be categorized in the following three categories:
★ Unlimited companies.
★ Company limited by shares.
★ Company limited by guarantee.
A company which is formed by the special Act passed by the Central or State legislature is called Statutory company. This type of company is not required to frame their Memorandum or Articles of Association. They are also not required to use the word limited as a part of their name. Their working is controlled, checked and reviewed by the Comptroller.
Companies registered without limited liability is known as an unlimited company. The liability of such company is unlimited like an ordinary partnership firm and every member of such company is liable for debts of the company in proportion to his interest in the company. In such companies the articles shall state the number of members with which the company is to be registered and if the company has a share capital the amount of the share capital with which the company is to be registered.
Private companies or companies having no share capital can start their business immediately after they are incorporated but public companies with share capital are required to obtain the necessary certificate from the registrar of companies to comment the business.
★ Registration is not compulsory under Indian Partnership Act, 1932 whereas company comes into existence after the registration under Companies Act, 1956.
★ In the case of partnership firm the number of members must not exceed 20 in any business and minimum is 2 whereas in a private limited company minimum is 2 and maximum is 50 and in public limited company minimum 7 and no maximum limit.
★ Partnership firm do not have an independent legal position or status whereas company is independent legal status.
★ In partnership firm partners have unlimited liability whereas liability of shareholders is limited to the amount of the shares they hold.
★ In partnership firm transfer of interest is not transferable without consent of other partners whereas in a company shares are freely transferable without consent of other members.
★ Audit is not mandatory for a partnership firm whereas accounts of a company must be audited annually.
★ In a partnership firm stability of business is not affected by death or insolvency of partner whereas in the case of a company shareholder's death or insolvency would not affect the constitution of the company.
Companies where liability of members is always limited to a fixed amount agreed by its members to contribute towards the assets of the company is known as a company limited by guarantee. In such companies the articles shall state the number of members with which the company is to be registered. Thus, the amount promised to pay by a member of a company limited by guarantee is called the guarantee.
Companies where the liability of the shareholders of a company is limited to the extent of the unpaid amount on the shares held by them the company is known as a company limited by shares. In n companies, whatever may be the liabilities of a company, shareholders are not bound to pay anything more than the face value of the shares held by them. Thus, the liability of each of the shareholders of such a company is always limited to the extent of the amount unpaid on his shares. A company limited by shares can be a public company or private company.
16⟩ Please tell me what if articles of association of a company can be altered after its incorporation?
Articles of association of a company can be altered as the procedure of alteration or amendment of articles of association is relatively simple. It can be altered by the members by passing a special resolution subject to the provisions of the Companies Act.
Memorandum of Association contains the constitution and the objects of the company for which it is formed. The company cannot exceed the powers conferred on it by its memorandum.
Following documents are required:
★Memorandum of Association duly stamped, signed and witnessed.
★ Articles of Association duly stamped, signed and witnessed.
★ A list of persons who have consented to become directors of the company.
★ A written and duly signed consent of the directors agreeing to act as directors and to pay for qualification shares, if any.
★ A notice of the address of the registered office of the company.
★ A statutory declaration to the effect that all the requirements of the law for registration have been duly complied with.
★ Payment of fees and issue of certificate of incorporation.
Articles of association is the internal regulations of the company which help to govern the management of the internal affairs of the company and the conduct of its business.
Memorandum of association can be altered only under certain circumstance and in the manner provided in the Companies Act. It requires the sanction of shareholders and the central government or the Company law board or the court as the case may be. The procedure of alteration or memorandum is more difficult.