Limited Companies

Limited Companies–
A limited company is an artificial person with perpetual succession incorporated under the Companies Act.–
Company is a legal person, created through process of incorporation for which Registrar of Companies issues Certificate of–
Shareholders are owners of the Company and directors are agents of the company to manage company.–
A limited company may be private limited or public limited.–
Members in a private limited company: minimum 2; maximum excluding employees can be 50.–
Members in a public limited company: minimum 7 and there is no ceiling on maximum number.–
Number of Directors: A private limited company should have minimum 2 directors whereas a public limited company should have minimum 3 directors. No limit on maximum number of directors. In a public limited company, if directors are more than 12, permission from central govt required.–
Public company: When minimum 51% shares with government.–
Documents for opening the account: Memorandum of Association, Articles of Association, Certificate of Corporation, Certificate of Commencement of Business (only for public limited companies) and Board Resolution. No introduction is required as Certificate of Incorporation is enough introduction. However, KYC norms to be applied on all persons authorized to operate–
the account.–
Memorandum of Association: It contains name of the Company, its authorised capital, registered office and liability of shareholders, objects of the company etc.–
Ultra Vires: Anything done by the directors beyond the objects stated in the memorandum of association is called ultravires–
The directors can not delegate their authority to any other person.–
In case a director dies, the cheques signed by him presented for payment can be paid if these are dated prior to his death.–
If a director stops authority of other director it is of no use. Bank will allow operations as per Board Resolution.–
Common Seal of the Company is to be affixed on documents as per Articles of Association or Board Resolution.–
Cheque favouring company should not be credited to the personal account of the director. Such cheques should not be paid in cash. These should be credited to the account of company only.

Accounting & Finance for Banking

Principles & Practices of Banking Module E Pdf

Module E PPB ePDFs available in our android app. Get them all at

Accounting and Finance for Banking Module A Pdf

Accounting and finance for bankers all ePDFs are available in our an app. Get them all at

Accounting and Finance for Banking Module A Pdf

Accounting and finance for bankers all ePDFs are available in our an app. Get them all at
Learning Sessions
Btech, JAIIB CAIIB and a tutor. Have taken more than 900+ hours online classes with more than 1,25,000 students


Free Live Classes


More from author

What next after CAIIB? IIBF Certifications at a Glance

What next after CAIIB? 15 Certificate Exams in Finance and Banking useful for Bankers:: Introduction As per the IBA settlement, bankers who have passed JAIIB and CAIIB...

JAIIB Mega Mock Test for Free | Principles and Practices of Banking

ppb mock test:- Jaiib Exam 2020 dates will be announced soon for May 2020 by iibf. It is high time for preparing for all...

JAIIB Study Material Principles and Practices of Banking Live Class Previous Year Questions Jaiib Study Material PDF Notes Papers Mock Tests - In this post you can get JAIIB Study Material PDF files as shared by other...

Principles and Practices of Banking – PPB Most important Questions

Hello friends, today in this article by the learning sessions we will share important questions and memory called topics of PPB that is principles...