short note on the types of features of company.
Answers
Answer:
*A company is an artificial person being created by the law that has an existence separate and apart from its owners. In other words, a company is an artificial person created by law, with a distinctive name, a common seal and perpetual succession of members*
1. Artificial Legal Person:
A company is an artificial person created by law. Though it has no body, no conscience, still it exists as a person.
2. Separate Legal Entity:
A company has a distinct entity separate from its members or shareholders.
3. Common Seal:
Being an artificial person, company cannot sign the documents. Hence, it uses a common seal on which its name is engraved.
4. Perpetual Existence:
Unlike partnership, the existence of a company is not affected by the death, lunacy, insolvency or retirement of its members or directors.
5. Limited Liability:
The liability of the members of a company is normally limited to the amount of shares held or guarantee given by them.
6. Transferability of Shares:
The member of a public limited company can sell his shares to others without the consent of other shareholders.
7. Separation of Ownership from Management:
The shareholders, i.e., owners being scattered all over country give right the directors to manage the affairs of the company.
8. Number of Members:
In case of a public limited company, the minimum number is seven and there is no maximum limit.