1.

Match the correct pairs.Group “A”Group “A”a)Private company1)Compulsoryb)Public company2)Minimum 7 membersc)Common Seal3)Maximum 50 membersd)Registration of a company4)61% share capitale)Government company5)51% share capital6)Symbol of a company7)Optional8)Simple formation9)Easy dissolution10)Hindu succession Act 1956

Answer»
Group AGroup B
a)Private company3)Maximum 50 members
b)Public company2)Minimum 7 members
c)Common Seal6)Symbol of a company
d)Registration of a company1)Compulsory
e)Government company5)51% share capital

Explanation: 

a. A private company can have minimum 2 members and maximum 50 members. Hence, as per the definition of a private company, any company with less than two members will be regarded as a sole proprietorship firm. On the other hand, if the number of members exceeds 50, it will be regarded as a public company. 

b. A public company can have a minimum of seven members, but there is no limit on the maximum number of members. 

c. A company is an artificial person; therefore, it cannot sign its documents. However, to validate the documents, the directors of the company use a common seal on behalf of the company. Hence, the common seal is regarded as the symbol of the company. 

d. According to the Indian Companies Act 1956, every company has to be registered with the Registrar of Companies. 

e. In a government company, minimum 51% of share capital is owned by the government and the rest 49% can be owned by the private players of the market. Therefore, the decision-making power rests with the government.


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