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Microlesson · 5-min read

Section 2(20) Company vs Section 2(11) Body Corporate – distinguishing key entities

# Company [S. 2(20)] vs Body Corporate [S. 2(11)]

## 1. "Company" – Section 2(20)

A company means a company incorporated under this Act or under any previous company law.

General characteristics:

  • Incorporated association → an artificial person.
  • Separate legal entity from its members.
  • Perpetual succession – members may come and go, the company continues.
  • Common seal – optional under the 2013 Act.
  • Any document is valid if signed by 2 directors, OR 1 director + Company Secretary (where a CS has been appointed), even without a seal.

Examples: Reliance Industries Ltd (1973), Tata Steel (1907), Infosys (1981).

## 2. "Body Corporate" – Section 2(11)

A body corporate or corporation is a wider term. It includes a company incorporated outside India, but does NOT include:

1. A co-operative society registered under any law relating to co-operative societies; and

2. Any other body corporate (not being a company as defined in this Act) notified by the Central Government.

## 3. Visualising the relationship

```

BODY CORPORATE (wider)

+----------------------------+

| COMPANIES under CA 2013 |

| Foreign companies |

| Statutory corporations |

| - Excludes: Co-op societies|

| - Excludes: CG-notified BCs|

+----------------------------+

```

Every company is a body corporate, but not every body corporate is a company.

## 4. Common-seal optionality – why it matters

Post-amendment, the common seal is no longer mandatory. The dual-signature rule (2 directors OR 1 director + CS) protects companies that have done away with the seal — execution authority is now person-based rather than seal-based.

## 5. Quick comparison

FeatureCompany [2(20)]Body Corporate [2(11)]
ScopeNarrow – under CA 2013 / earlier lawWider – includes foreign cos & statutory corps
Co-operative societyNot a companySpecifically excluded
Foreign companyNot a 'company' under 2(20)Specifically included
CG-notified exclusionsNonePossible

Worked example

### Example 1

Q. Is a company incorporated in Singapore a 'body corporate' for the purposes of the Companies Act, 2013?

A. Yes. Section 2(11) expressly includes a company incorporated outside India within the meaning of 'body corporate'. However, it is not a 'company' as defined in Section 2(20), because it is not incorporated under the CA 2013 or any previous Indian company law.

### Example 2

Q. Is a co-operative housing society in Mumbai a body corporate?

A. No. Section 2(11) specifically excludes co-operative societies registered under any law relating to co-operative societies.

### Example 3

Q. ABC Pvt Ltd signs an export contract without affixing its common seal. The contract bears signatures of two directors. Is the contract validly executed?

A. Yes. The common seal is optional under the CA 2013. A document signed by two directors (or by one director and the company secretary, where appointed) is valid execution even without a seal.

⚠️ Common exam mistakes

  • Equating 'body corporate' with 'company' — body corporate is the wider term.
  • Including co-operative societies within body corporate — they are statutorily excluded.
  • Excluding foreign companies from body corporate — they are statutorily included.
  • Stating that the common seal is mandatory — it is now optional.
  • Forgetting that one director + CS (where appointed) is also a valid execution combination, not just two directors.
Bare-Act text Sections 2(11) & 2(20) · Companies Act, 2013 · click to expand
Section 2(11) – "body corporate" or "corporation" includes a company incorporated outside India, but does not include – (i) a co-operative society registered under any law relating to co-operative societies; and (ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf. Section 2(20) – "company" means a company incorporated under this Act or under any previous company law.
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