“Company is an association of collection of individual person whether natural person, legal person or a mixture of both”. Company member shares a common purpose and unite in order to focus their various talent and organise their collectively available skills or resources to achieve specific, declared goals. This act is applicable to the whole of India except Jammu and Kashmir.
Characteristics of Company:
- Voluntary association which may include non profit organisation.
- Its own name and seal – Company is treated as an artificial purpose and is been run by the Board of Directors chosen by shareholders. Thus a common seal of the company name is needed to register the decisions on company’s name.
- Company is a separate legal entity.
- Company has its own financial and banking accounts.
- Perpetual succession– It means that it is never ending until and unless it has been winded up or the purpose of forming a company has been completed.Insolvency or death of the partner do not affect the life of the company.
- It has a capacity to sue or to be sued– It gives access to the company that it can file a court case against any person doing harm to him(business) and in return can be sued too.
Types of Companies: