CLASSIFICATION OF COMPANIES

 

We have there broad classification or classes of companies:

1. Chartered Companies.
2. Statutory Companies.
3. Registered Companies.

Chartered Companies:  A chartered company is a trading corporation enjoying certain rights and privileges, and bound by certain obligations under a special charter granted to it by the sovereign authority of the state, such charter defining and limiting those rights, privileges and obligations, and the localities in which they are to be exercised. Such companies existed in early times, but have undergone changes and modifications in accordance with the developments which have taken place in the economic history of the states where they have existed. In Great Britain the first trading charters were granted, not to English companies, which were then non-existent, but to branches of the Hanseatic League, and it was not till 1597 that England was finally relieved from the presence of a foreign chartered company.

Statutory Company: A statutory company can be approved by either the Central or State Legislature Statutory Company. A statutory company is usually created with the intention of serving people rather than the traditional business goal of creating profits.

Registered Companies: a registered company is a company incorporated in accordance with the provisions of the Companies and Allied Matters Act, following the processes of registration stipulated by the Act.