MCA Companies Act – Glossary

Company

• Means a company incorporated under the latest companies Act or under any previous company law

E.g. CBL Data Science Private Limited is a company incorporated under Companies Act, 2013

Associate Company

• A company that is in relation to another company.
• This means a company in which that other company has a significant influence
• Is not a subsidiary company of the company having such influence and
• Includes a joint venture company

E.g. If Company A is having a significant influence on Company B, then Company B is an associate company of Company A

Joint Venture (JV)

• Means a joint company where 2 or more companies or entities have joint control of the joint company, have rights to the net assets of the Company

E.g. HDFC ERGO GENERAL INSURANCE COMPANY LIMITED is a JV between HDFC Limited & ERGO International AG

Significant Influence

• Means control of at least twenty per cent. (>=20%) of total voting power, or control of or participation in business decisions under an agreement

E.g. If Company A has 25% of voting power in Company B, means Company A has significant Influence on Company B.

All Parent Companies have a significant influence on their subsidiary companies.

Authorized Capital or Nominal Capital

• Is the maximum amount of share capital of the company that is authorised by the memorandum of a company

E.g. Rs 2,400 Cr is the authorised capital of Infosys Limited and Rs 9 Cr is the authorised capital of Google India Private Limited as of 5 Nov 2021