2.

Formation of Company Under the company Act-1994

Company is an artificial and legal person. It is invented by law and it also dissolute
by law. These companies are being got registration by the companies Act, 1994.A
company can be formed this following steps must be taken:

1. Taking Initiative:
The First step of formation of a company is taking initiative. He or they who
take the first proposal is called initiator. According to the Companies Act,
1994 section 5 “ For private limited company minimum seven people are
required for taking initiatives . In these steps the initiator need to go
through a few steps :
a) Thinking about the business and its possibility.
b) The shape, characteristics, region, capital etc of the business.
c) The risk problems, potentiality and success of the business.
d) At the forth step, the initiators need to select a name for the organization

2. Preparation of Documents :
There are two documents :

a) Memorandum of Association: It is a real or legal documents,

certificate or status of the company .The description about the company
(Name), address of the registered building , motto and objective ,
amo0unt of the capital , description about the responsibility of
shareholders and their contribution are written down in the memorandum
.

b) Article of Association: The second more important documents for

company is Article of Association. The documents that contains all rules
and regulations regarding daily activity and internal, management of the
company is called Article of Association.
3. Submission of document:
In this stage the initiators collect the form from the registrar of joint Stock
Company and by adding some documents they submit the form. These documents
are as follows:-

a) Copy of memorandum of Association. Company if Tab

b) Copy of Articles of Association. In context of public limited must submit A is

accepted in lieu of Articles of Association then the initiators declaration with the
signature.

c) The initiators who wants to be the directors they address, and occupation.

d) Directors must submit the letter of agreements

e) Directors have to submit the agreement of qualification shares

f) Description of the total capital of Joint Stock Company to the registrar with the
registration form these documents must be submitted well as the required fee must
be given to the registrar.

4. Collection of Certificate of Incorporation:

In the Company Act 1994 it is s that after submission of registration form with
required documents to the registrar the registrar will check the form and if he
satisfied then he reserve the in format and after 30 days of submission of
registration form the registrar will registrar company. If the registrar will not
satisfied with the information then after period the registrar will inform the
initiators within 10 days.

According to company. Act 1994, section 24(1), after the registration of

memorandum of association the registrar will provide the registration of company,
start its activities
 After getting the registration the private limited company can the public limited
company needs to collect the certificate of commencement a getting the
registration firm the registrar for starting the activities.

5. Collection of Certificate of Commencement:

According to the Company 1994 the directors of the Joint Stock Company have to
collect the commencement alter registration of the company. The directors of the
comp will apply to the registrar in the certified form provided by the registrar.

In the 150 (1) section of the Company Act 1994 it is said that, there are some
clauses mine that the company will start the activities or take loan from the
financial institutions. After getting the Certificate of Commencement Joint Stock
Company start its activities.
  .Rights of a Common Carrier

1. When not bound to carry goods: A common carrier is not bound to carry
goods under certain circumstances ,e.g., when he has no room , when the goods are
dangerous or not of type he is accustomed to carry, or when he is to carry goods to
a destination to which he does not ordinary travel.

2. Entitled to reasonable charges : He is entitled to reasonable charges for his

work. He can allow concession rates to some customers but cannot demand
unreasonably high payments from anybody.

3. Has lien: he has lien on the goods for his remuneration and can refuse to deliver
the goods until his dues are paid. This is known as the Carrier’s Lien.

4. Steps for refusal of delivery: If the consignee refuses to accept delivery of the
goods, the carrier is at liberty to take such steps as are reasonable and prudent
under the circumstances.

5. Damages: The carrier is entitled to recover damages from the consignor if the
goods given for carriage are dangerous or are loosely packed and the carrier suffers
injury therefrom. Bamfield V. Goole & Sheffield Transport Co.

6. Exemption: The carrier can , subject to the provisions of the Carriers Act, enter
into special contracts exempting him from liability under stated circumstances.