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Rezaur Khan (NA)     22 August 2013

Can we hold that land ( one unit ) under the name of the com

Dear Sir or Madam, 1. I am from BIHAR . 2. I have got one unit of land as allowed under The BIHAR LAND REFORMS ( FIXATION OF CEILING AREA AND ACQUISITION OF SURPLUS LAND ) ACT , 1961 . 3. All of our family members are holding one unit of land . There is no scope for us to acquire more land . 4. We wish to purchase more land . But , as mentioned earlier , The BIHAR LAND REFORMS ( FIXATION OF CEILING AREA AND ACQUISITION OF SURPLUS LAND ) ACT , 1961 prohibits us to acquire more land. 5. We want float a Company ( or a number of companies ) , and subsequently , purchase more lands under the name of the Company . QUE - Can we hold that land ( One Unit ) under the name of the Company , apart from holding lands in our names ?? KINDLY NOTE- THE COMPANIES ACT 1956 According to the Act, a company means "a company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws". The salient features of a company are:- • Artificial legal person:- a company is an artificial person in the sense that it is created by law and lacks the attributes possessed by natural persons. It is invisible, intangible, immortal and exists only in the contemplation of law. Hence, it has to operate through a board of directors consisting of individuals. • Separate legal entity:- a company is a distinct legal entity, different from its members or shareholders. This implies that:- the property of the company belongs to it and not to the members or shareholders; no member can either individually or jointly claim any ownership rights in the assets of the company; an individual member cannot be held liable for the wrongful acts of the company even if he/she holds virtually the entire share capital; the members of the company can enter into contracts with the company. • Perpetual succession:- a company enjoys continuous existence and its continuance is not affected by the death, insolvency, mental or physical incapacity of its members. It is created by law and law alone can dissolve it. • Limited liability of members:- the liability of its members is limited to the amount remaining unpaid on the shares subscribed by them. Thus, in case of fully paid-up shares, the members cannot be asked to contribute any further, if the company goes into liquidation. • Common seal:- a company has a common seal, which is the signature of that company and signifies common consent of all the members. The company's seal is affixed on all the documents executed for and on its behalf. • Transferability of shares:- the shares of a public company are freely transferable without the permission of the company but in a manner provided in the Articles. The shareholders may transfer their shares to another person and this does not affect the funds of the company. But, a private company imposes restrictions on transfer of its shares. • Separate property:- all the property of the company vests in it. The company can control, manage and hold the same in its own name. The members have no ownership rights in the company's property, either individually or collectively. A shareholder does not even have an insurable right in the property of the company. The creditors of the company can have a claim only against the property of the company and not against the property of the individual members. • Capacity to sue and being sued:- a company can enforce its rights through suits and can also be sued for breach of its statutory rights.


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 1 Replies

uttamtibrewal@yahoo.com (Advocate)     25 June 2014

Mr Khan .....

Company is also represented by it directors so forming company wont help you much

As am from Jharkhand and have been dealing with such matter for Ranchi Zamindari so shall help you in regards .... need some details how much land have you already have  in hand and number of family members....

reply back so that better advice can be made....


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