accounting

The company by its articles restricts the right to transfer it shares.
It prohibits any invitation to the public to invest their money in shares or debentures of thecompany.
7. Public limited company:
It can be formed by at least seven members and there is no limit to maximum members. '
It can invite applications from investors through advertisement rn the news paper.
8. Company limited by guarantee:
A company in which liability of its members is limited to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound
9. Unlimited company: '
A company in which liability of its members is unlimited. Every/member of the company is personally liable to the full extent of his personal assets for the full debts of the company.
10. Association not for profit:
It enjoys all the privileges of a limited company without using me word limited or private limited. It is mainly formed for the promotion of commerce, art, religion, charity etc.
11. Memorandum of association:
It is the basic document of the company. It contains the fundamental conditions upon which alonea company can be incorporated. It sets out die limits outside which the action of the companycannot go. ,
12. Article of association:
It is second important document in the incorporation of a company. It contains the rules and regulations for the internal management of the company.
13. Prospectus:. .
It is a valuable document issued by the company for raising of the capital.
14. Shares:
The total amount of capital of a company is divided into smaller units. These units are called shares.
15. Share capital:
The total capital is divided into a large number of shares. The sum or total of the par value ofshares of a company is called share capital. ,
16. Authorized, capital: ,
The amount of capital with which the company is registered. It is also known as nominal capital or registered capital.
17 Issued capital: '
Shares offered to the general public for contribution are known as shares issued. The total par value of such shares is called issued capital.
18. Subscribed capital:
Out of the total number of snares issued by the company, that number of shares which is taken up by the public are known as shares subscribed. The total par value of such shares is called subscribed capital.