Company Registration in Salem
An investment company is a company the principal business of which consists in acquiring, holding and dealing in shares and securities. The word 'investment', no doubt, suggests only the acquisition and holding of shares and securities and thereby earning income by way of interest or dividend etc. But investment companies in actual practice earn their income not only through the acquisition and holding but also by dealing in shares and securities i.e., by buying with a view to selling later on at higher prices and selling with a view to buying later on at lower prices.If a company is engaged in any other business to an appreciable extent, it will not be treated as an investment company. The following two sets of legal opinions are quoted below as to the meaning of an investment company:
According to one set of legal opinion, an "investment company" means company which acquires and holds shares and securities with an intent to earn income only from them by holding them. On the other hand, another school of legal opinion holds that "an investment company means a company, which acquires shares and securities for earning income by holding them as well as by dealing in such shares and other securities". According to section 2 (10A) of the Insurance Act, 1938, an investment company means a company whose principal business is the acquisition of shares, stocks, debentures or other securities.
Companies (Amendment) Act, 2002 has added a new part IX A to the main Companies Act, 1956 consisting of 46 new sections from 581A to 581ZT. According to the provisions as prescribed under Section 581 A(I), a producer company is a body corporate having objects or activities specified in Section 581B and which is registered as such under the provisions of the Act, The membership of producer companies is open to such people who themselves are the primary producers, which is an activity by which some agricultural produce is produced by such primary producers.
For Company Registration in Salem -> Click here