This article critically discusses the features and working of private companies in the country. It also distinguishes public companies and private companies. The article also focusses on the benefits and limitations of a private company along with the procedure of registration of a private limited company which is in compliance with Act. The article also discusses a variety of advantages and disadvantages of incorporating a private limited company.
The most prominent scam in the recent history of American economy was the AIG Accounting Scandal of 2005. The AIG was found guilty of entering into sham transactions in order to inflate the reserves and to conceal losses. It was also found guilty of misled the Insurance Department about offshore affiliates of AIG. The company was in such a position that its failure would have meant a huge defeat for the entire economy of America. Therefore, it became imperative for the government to protect this company from failing. As per the records of U.S. government, AIG was too huge a company to fail. It was given a federal loan of $85 billion to revive back as well.
This article explains in detail the functions of the Board of Directors under the Companies Act, 2013 Act and how these functions are performed. The article also gives a background of the meaning and types of directors in a nutshell. Various committees formed to fulfil functions of the Board are also discsed by the author.
This article analyses the applicability and origin of the doctrine of ultra vires in different countries. The author has discussed a number of cases to explain the nuances of the doctrine. To form the basis of the doctrine, the purpose and interpretation of the object clause is also analysed in great detail. In India the doctrine has been incorporated under Section 10 of the Companies Act, 2013, and as per the Section, a company or its controllers cannot go beyond the capacity of the company as enumerated in the objects clause of the MoA.