The Gazetteers Department

The development of joint-stock companies in Sholapur district is of recent origin. There were a few companies in the past, but the state of their organisation was much different from what it is to-day. The form of their organisation has mainly developed out of proprietory or partnership concerns. The joint-stock companies require a large amount of capital, the supply of which is not possible for a single entrepreneur and even a partnership firm. A joint-stock company is a perpetual body from the view-point of a law.

There are two types of joint-stock companies in Sholapur district, viz., private limited companies and public limited companies. The Companies Act of 1956 described the private limited company as one which restricts the right to transfer its shares, if any, limits the number of its members to fifty and does not invite the public to subscribe towards any shares and debentures of the company. The Act further lays down that the company, association or partnership consisting of more than 20 persons shall be formed for the purpose of carrying on any other business that has for its object an acquisition of gain by the company, association or partnership or by the individual members thereof, unless it is registered as a company. Registration, thus, was made compulsory for these companies.

The first private company was established in the district at Pandharpur in the year 1937 to carry on the business of electric power supply. Now there are 10 private companies in the district carrying different types of business. The growth of the private limited companies took place actually after the fifties. Before 1950 there were only four companies in the district. In 1965, four new companies were registered. During the fifties only one company was registered, namely, Rajan Textile Mills, Sholapur. Sholapur district is said to be an industrially developed area; but compared to its industrial development and commercial advancement, there are a very few companies in the district. It may be due to the predominance of the weaving industry, the nature of which does not require huge capital investment.

These companies engage themselves in various kinds of productive activities with a view to obtaining profits. As a rule, they require large amount of capital due to the expansive nature of their operations. They use it for acquisition and maintenance of plant, equipment, buildings and other fixed assets, for holding current assets in the form of inventories of finished or partly-finished products as well as raw materials and stores required for production. In the nature of things they require huge investment in current assets and accounts receivable, etc. Capital is raised by floating shares and by issuing debentures. The shares of these companies are transferable by law.

The number of public limited companies in the district is very small as compared to its industrial development. There are only four public limited companies in the district. The first public limited company was registered on 17th November 1932 with an authorised capital of Rs. 51,00,000.

In table No. 37 are given the statistics of authorised capital, subscribed capital and paid-up capital, date of registration, number of share-holders and the business carried by the companies in the district.

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