Dear Sir,
What is the difference between Company and Body corporate. Which are the categories coming under Body Corporate. Whether Company and Body Corporate are sane meaning
Please Advice
Regards
Sumesh Student IPCC
3 Replies
CS GK Murty
(Company Secretary)
(225 Points)
Replied 05 May 2014
Company means an association of persons incorporated under the Companies act with a separate legal entity and perpetual succession Whereas body corporate means a legal entity (such as an association, company, person, government, government agency, or institution) identified by a particular name. Also called corporation, corporate body or corporate entity.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 05 May 2014
Section 2(11) of Companies Act 2013 provides that ‘body corporate’ or ‘corporation’ includes a company incorporated outside India, but does not include---
-
A cooperative society registered under any law relating to cooperative societies; and
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Any other body corporate not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf.
General characteristics of body corporate are:
-
Incorporated under some law
-
Perpetual succession
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Ability to hold property in its own name
-
Legal entity apart from the members
Examples of ‘body corporates’:
- All companies registered under Indian Companies Act
- All companies registered under any Act outside India
- Any Corporation registered under any special law in India or abroad
- Public financial institutions u/s 2(72) of Companies Act 2013
- Nationalised banks incorporated under Banking Companies (Acquisition & Transfer of Undertakings) Act 1970
- LLPs
These are not bodies corporates:
- Proprietorship concerns
- Partnership firms (other than LLPs)
- HUFs
- Societies registered under Societies Registration Act
- Mutual funds managed by trustees (UTI is a body corporate)
Thus body corporate is a wider term. Every company is a body corporate but every body corporate is not a company.
CS GK Murty
(Company Secretary)
(225 Points)
Replied 05 May 2014
I agree with PCA for giving more clarity.
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