![]() ![]() Here, the company owning these shares becomes the holding or parent company. In some cases, a company’s shares might be held fully or partly by another company. In terms of control, there are two types of companies. Companies on the basis of Control or Holding Secondly, they need to have a minimum of 7 members, but the maximum number of members they can have is unlimited. In contrast to private companies, public companies allow their members to freely transfer their shares to others. These members include present and former employees who also hold shares. In terms of members, private companies need to have a minimum of 2 and a maximum of 200. Private companies are those whose articles of association restrict free transferability of shares. Unlike other companies, OPCs don’t need to have any minimum share capital. They are separate from sole proprietorships because OPCs are legal entities distinct from their sole members. These kinds of companies have only one member as their sole shareholder. Companies on the basis of members a) One Person Companies (OPC) Learn more about Small Scale Industries here in detail. Their liabilities will extend to the company’s entire debt. Hence, the company can use all personal assets of shareholders to meet its debts while winding up. Unlimited companies have no limits on their members’ liabilities. ![]() The company or its creditors cannot compel them to pay any more money. In case of winding up, they will be liable only to pay only the amount so guaranteed. ![]() In some companies, the memorandum of association mentions amounts of money that some members guarantee to pay. Learn more about Multinational Companies here in detail. This means that in case of winding up, members will be liable only until they pay the remaining amount of their shares. In these companies, the liabilities of members is limited to the extent of the amount not paid by them on their shares. Sometimes, shareholders of some companies might not pay the entire value of their shares in one go. When we look at the liabilities of members, companies can be limited by shares, limited by guarantee or simply unlimited. Classification of Different Types of Companies We can classify all these companies in various categories.
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