a) Explain the types of companies known to you under the Companies Act, 1963 (Act 179). (12 marks)
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- Private company limited by shares
A company having the liability of its members limited to the amount, if any unpaid on the shares respectively held by them. Section 9 sub section 1. The number of its members must not exceed 20. - Private company limited by guarantee
A company having the liability of its members limited to such amount as the members may undertake to contribute to the assets of the company in the events of its being wound up.
Refers to charitable organizations who are not supposed to make profit - Private unlimited company
One not having any limits on the liability of its members as the name suggest. - Public company limited by shares. A company having the liability of its members limited to the amount, if any unpaid on the shares respectively held by them. The number of members does not have any limits.
ADDENDUM-
Four Companies- The traditional types of Three Companies under Section 9 of the Companies Act 1963, ACT 179 when mentioned should attract 3 Marks each for One Company.
Where either PUBLIC OR PRIVATE COMPANY can be mentioned by the candidate, that should attract additional total mark of Three (3).