Companies under VARIOUS TYPES OF CUSTOMERS :

A company is a legal entity, distinct from its shareholders or managers, as it can sue and be sued in its own name. It is a perpetual entity until dissolved. Its operations are governed by the provisions of the Companies Act, 1956. A company can be of three types:

– Private Limited company: Having 2 to 51 shareholders.

– Public company: Having 7 or more shareholders.

– Government company: Having at least 51per cent shareholdings of Government (Central or State). The following requirements are to be met while opening an account in the name of a company:

– The account opening form meant for company accounts should be filled and specimen signatures of the authorized directors of the company should be obtained.

– Certified up-to-date copies of the Memorandum and Articles of Association should be obtained. The powers of the directors need to be perused and recorded to guard against ‘ultra vires’ acts of the company and of the directors in future.

– Certificate of Incorporation (in original) should be perused and its copy retained on record.

– In the case of Public company, certificate of commencement of business should be obtained and a copy of the same should be recorded. A list of directors duly signed by the Chairman should also be obtained.

– Certified copy of the resolution of the Board of Directors of the company regarding the opening, execution of the documents and conduct of the account should be obtained and recorded.