Question

2."A joint stock company is said to be an artificial person created by law, having a separate entity with a perpetual succession and a common seal.” Explain, giving examples.

Please give answer in short ​

Answer 1

Answer:

Thus, a company may be defined as “an incorporated association which is an artificial person created by law, having a separate entity, with a perpetual succession, a common seal, capital divided into transferable shares and carrying limited liability.

Answer 2

A joint stock company has a separate legal existence which means it has a distinct legal entity independent of its members which can be like an artificial person created by law. It has perpetual succession which means even if all its members die the company continues to exist as only the law alone can bring an end to its existence. A common seal is the official signature of the company, as a company cannot act and sign itself.