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20. THE COMPANY ACT, 1956 |
| The company Act offers a business organization which can have
unlimited partners (Shareholders) so it can collect big resources
for business. Though there are provisions of private limited Company
also which can be maximum 50 shareholders. This is an undisputed
fact that Company can acquire maximum resources in all kind of
business organization. The Company Act is one of the biggest Acts of
the World. It deals with all matters relating with Company from its incorporation to management and Administration, and its dissolution winding. A Board of Company Law Administration is created to administer this Act. The Central Govt. is empowered to remove any managerial person from office on the recommendation of Company Law Board. Provisions are also made for prevention of oppression and mismanagement. Company Law Board and Central Govt. is authorised to take action in case of mismanagement. |