Llc Company: Companies Have Changed The Format
General forms of business organizations include sole proprietorship, co-operative organizations, partnership firms, Llc Company etc. One of them is also joint stock companies. It is a business organization in which a group of people come together and contribute their capital. Any person interested can be a member of the company with the consent of its members.
It is classified into two forms that are Public limited company and Private limited company. Private limited company consists of few members only selective people can join the company. Public limited company is also known as llc company. This is because the members do not directly take part in the workings of the company. Any persons interested to become a member of Llc company can become a member by investing his capital.
The member of the company gets a document called share. In return of which the members of the llc company will distribute dividends from the profits of the company. The llc company has to be registered by the promoters with the registrar of companies. Only after the registration of the llc company the promoters can issue the amount of capital for subscription. The amount of money actually subscribed by the member is called as paid up capital. The llc company issues different types of shares namely equity shares, preference shares and debentures etc. The owners of the company are the share holders. However they do not take part in company matters. Instead their elected representatives better known as directors carry on the workings of the company. The directors are the managers of the company. The secretary of the company co-ordinates between the shareholders and directors. He is the pivot joint of the company. The directors, secretary and the employees work together for the progress of the company.
The workings of the llc company run through the conduct of different types of meetings. The meetings include the statutory meetings , board meetings{directors meetings}, annual general meetings , class meetings etc. The statutory meeting is the meeting which is held once in the lifetime of the company. It is the first meeting of the company. this meeting is held by the promoters of the company. This meeting is held to approve the statutory report and the preliminary expenses incurred by the company. The annual general meeting is held every year to disclose the progress of the company. It not only approves the annual report but also the financial statement of the company. The financial statement includes the profit and loss account , balance sheet , trading account and even the cash flow statement. It has to be held within the gap of every eighteen months under the provisions of the companies act. The meetings of the director are held every three to four months. The directors of the respective company have to be attending the meeting. Meetings of the company have to be conducted with prior notice. Notice is an invitation given to the members to attend the meetings.
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