Company and Corporation-Distinguish

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Avinasheswar

Avinasheswar (Querist)
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03 October 2007 What is the difference between a company and a corporation?
Is the term Corporation defined in any Act?

Srinath A. N.

Srinath A. N. (Expert)
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03 October 2007 The expression "Corporation" is wider than the term "Company". It is a legal person & capable of holding property and becoming a member of the Company.

Generally a Compny formed under the Act of Parliment is colled as Statutory Company/Corporation.

For using the word Corporation, it should have minimum Authorised Capital of Rs.5 Crores.

The world Corporation is defined in Section 2(7) of the Companies Act,1956

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Avinasheswar

Avinasheswar (Querist)
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03 October 2007 What is given in Section2(7) is not a defenition of the term 'Corporation'. It is just an explanation for the purposes of the Companies Act to exclude 'Companies' from the scope of this term.
Section 2(7(c) mentions specifically "any other body corporate(NOT BEING A COMPANY)" which means if this explanation were not there, there was a chance of 'Company' being included in the term 'Corporation'.
Does not this mean Corporation is defined somewhere else or it is somewhere explained in some case law?
I wish to know the real defenition of the term Corporation.
Where is it provided that a Corporation should have minimum Authorised Capital of Rs.5 Crores?

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R.V.RAO

R.V.RAO (Expert)
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03 October 2007 Corporation as defined in www.investordictionary.com
A group of persons granted a state charter legally recognizing them as a separate entity having its own rights, privileges, and liabilities distinct from those of its members. The process of incorporating should be completed with the state's secretary of state or state corporate counsel and usually requires the services of an attorney.

www.findlaw.com
www.google.com
both provide definition for the word corporation.
as Mr. Srinath A.N. RIGHTLY SAID TO HAVE THE WORD CORPORATION WHILE APPLYING FOR A COMPANY NAME UNDER COMPANY'S ACT A COMPANY'S AUTHORISED CAPITAL SHALL BE NOT LESS THAN RS. 5 CRORES .IT IS A DEPT. GUIDELINE FOR ROC TO SANCTION APPLICATION FOR NAME.
I ALSO AGREE WITH YOU THAT SEC 2 DOES NOT EXPLAIN OR TOTALLY DEFINE A CORPORATION.
R.V.RAO

ARUN KUMAR MAITRA

ARUN KUMAR MAITRA (Expert)
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23 August 2012 The term"Corporation" includes a company incorporated outside India but does not include :
a corporation sole;
a co-operative society;and
any other body corporate {not being a company as defined in the Act)which the Central Govt. may, by notification in the official gazette,specify in this regard vide Section2(7)of the Companies Act,1956.

Whereas the term Company means a Company as defined in Section 3.