Classification of Company
Classification of Company Group 1: Classification Based on Mode of Incorporation (Creation) This group defines the legal mechanism through which the company came into existence. Chartered Companies (Royal Company): Explanation: Incorporated by a Royal Charter granted by the Crown or Sovereign. Status: This is an historical method (e.g., Bank of England) and is generally obsolete in modern jurisdictions like India. Statutory Companies (Special Act Company): Explanation: Incorporated by a Special Act of the Parliament or State Legislature. They are created to fulfill a specific public utility purpose. Examples: Life Insurance Corporation of India (LIC), Reserve Bank of India (RBI). Registered Companies (Incorporated Company): Explanation: The most common type. They are formed by being registered under the current Companies Act (e.g., Companies Act, 2013). Identification: They receive a Certificate of Incorporation from the Registrar of Companies (ROC). Group ...