What are the characteristics of the company?


0

The following are the characteristics of the company:

  1. Incorporated Association: Under the Companies Act, a company must be registered or incorporated. The minimum numbers of persons required for incorporation are seven in case of public co. and two in case of private company.
  2. Artificial person: It is an artificial legal person enjoying same rights and owing same obligation as a nature person.
  3. Separate Legal Entity: A company is separate and distinct from the persons who constitute it.
  4. Limited Liability: the liability of its members is limited to the unpaid value of the shares held by them or guarantee given by them.
  5. Separate Property: Company is entitled to own and hold property as distinct from its members.
  6. Transferability of Shares: Shares of the company are freely transferable which makes the life of the company independent of the lives of its members.
  7. Perpetual Existence: A company being an artificial judicial person, it is not affected by the death, insolvency or retirement of the members. Members may come and members may go out but the company can go on forever.
  8. Common seal: Common seal is the official signature of the company because a company cannot sign like a natural person.
  9. Company may sue and be sued in its own name: One of the consequences of separate legal entity is that a company may sue and be sued in its own name.

Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

6 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format