Question

explain any three characteristics of company​

Answer 1

Characteristics of a company:

(1) Voluntary association

• At least two persons, voluntarily, must join hands to form a private company, while a minimum of seven persons are required for a public company.

(2) Artificial person

• A company is created by law. Though, it has no body and no conscience, it still exists as a person, having a distinct personality of its own. Because like a human being it can buy, sell and own property, sue others, be sued by others, hence called as an artificial person.

(3) Separate legal entity

• A company has an independent status, different from its members. This implies that a company cannot be held liable for the actions of its members and vice-versa. Company has a distinct entity separate from its members.

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Answer 2

(1) Voluntary association

At least two persons, voluntarily, must join hands to form a private company, while a minimum of seven persons are required for a public company.

(2) Artificial person

A company is created by law. Though, it has no body and no conscience, it still exists as a person, having a distinct personality of its own. Because like a human being it can buy, sell and own property, sue others, be sued by others, hence called as an artificial person.

(3) Separate legal entity

A company has an independent status, different from its members. This implies that a company cannot be held liable for the actions of its members and vice-versa. Company has a distinct entity separate from its members.