Explain the following types of Companies.
(i) On the basis of incorporation
(ii) On the basis Membership

Ashok is an industrial designer by training. He had the opportunity to learn the technology of fibre glass manufacture while he was in Germany for his training. He plans to set up a plant for the manufacture of fibre glass in India and is able to interest some financiers and technologists. It is estimated that the initial investment in the plant will be of the order of Rs 50 lakhs. Ashok and others decide to set up a company for the purpose. Should they set up a public limited company for the purpose? If so, how should they go about it? If not, what-alternative would you suggest? What formalities will be required of Ashok and his associates if they choose the alternative form of organization suggested by you?

Describe the characteristics of company.

What are the disadvantages of company?

Differentiate between Private Limited company and Public Limited Company. (Any Five).