• Sun. Oct 2nd, 2022

COLLAGE STUDY

Study, News,Health,Technoloy and Blog

Company Features

Byadmin

Sep 7, 2022 ,
collagestudy.com

 1) Artificial person by law :- The company is an artificial, invisible, imaginary and intangible person created by law. A company is said to be an artificial person created by law because on the one hand it is born in an unnatural way and on the other hand it has rights and obligations like a natural person. As many rights as a real person can exercise in any business etc. 

 2) Separate entity :- Another feature of the company is that it has a separate entity from its members. Just as the existence of the partnership firm and the partners is considered to be one in partnership, in the same way the existence of the company is separate from its members. The reason for this is that the company itself being an artificial person created by the legislation, the company itself is responsible for the work done by the company. and not for the work done by the members. 

 3) Perpetual (perpetual) succession: “The company becomes perpetual succession from the date of amalgamation. Since the shares of the company are transferable, the existence of the company continues even if all its member shareholders change. Even events like death of the members of the company, insanity or transfer of shares cannot have any effect on the existence and life of the company. Rather, its original existence remains the same. 

4) In which the name of the company is written. Wherever the company has to sign, the directors of the company use the common seal. Without using the common seal, the company cannot be held liable for any action. It is mandatory for every company to have a common seal of its own. 

5) Voluntary Registered Association for Profit: A company is a voluntary association of persons whose basic purpose is profit making. The person voluntarily accepts the membership of the company.Yes, do not come under anyone’s pressure. Registration of such voluntary associations made for profit is also necessary. The registration is done under the Companies Legislation. 

 6) Democratic Management: The company itself is an artificial person, which cannot manage itself. In such a situation, collective objectives are achieved through democratic management system. The members and shareholders of the company cannot manage the company themselves, because they are scattered, the main purpose of their share purchase is to earn dividend, not to run the company. It is also called as representative management. 

 7) Limited Liability The various forms of business ownership that exist in the form of a company, the liability of its members may be limited to the extent of their share. If the members of a company have paid the full amount of the shares held by them to the company, then they cannot be bound for additional amount, no matter how much money the company may need to pay its liability. 

 8) Boundaries of scope: Every joint-capital company is strictly bound by the Companies Act, its Councilor Limitation Rules and Councilor’s Articles in its work. She cannot do any work by going outside the arrangements mentioned in these. 

 9) Transferable Shares: Any shareholder of any company can transfer shares to any other person as an independent right and thus he himself can be free from the membership of the company. 

10) Right to sue the company can also sue other parties and third party company. Not only this, the company has the right to sue its members and the member also has the right to sue his company. 

 11) Membership Public companies must have at least 7 members. There is no limit on the maximum number of members. Whereas a private company can have at least 2 members and up to 50 people. 

 12) Business Property The property of the company is not the property of the shareholders, it is the property of the company. “Shareholders can neither individually nor jointly own the properties of the company. The company being a statutory person, it has absolute right to hold, sell and buy commercial properties in its own name. 

13) Company Social nature of the company: The company also has a responsibility towards the society for which it is built and in which it develops, socialist systems can be allowed to run. In no joint capital organization with the narrow objective of making profit only 

14) Company Social character of the company: According to the modern ideology related to the company, responsibility towards the society has also been considered.

15) Borrowing: After amalgamation the company becomes a statutory person. Therefore, she can take a loan to meet her needs and if necessary, she can mortgage her movable and immovable property. 

 16) Dissolution of the company The company is born according to the rule of rule and works according to the rule of rule till life. The winding up of the company is also done by the rule of rule, so it is said that the winding up of any company cannot be done without rule of law. 

 17) Body finance system In case of additional work expansion, if more money is required, the company can also issue shares and debentures according to the councilor limit rule, thus the facility of obtaining body finance in the form of shares and debentures only Available in company form only, in other formats 

18) Company is not a citizen. Even if all the members of the company are citizens of India, the company cannot become a citizen of India. Just like if all the members of the company get married, the company does not get married. A company does not have the basic rights of a common citizen, yet companies can take refuge in the court for the protection of their rights. 

 19) Nationality and place of residence: Although the company is not a citizen of the country, it must have nationality. The nationality of the company is assumed to be that of the country in which it is amalgamated. The residence of the company is the place from where the business of the company is managed and controlled. The registered office of the company is considered as the residence of the company in order to communicate with the company and receive any other message. 

 20) Character of the company: The company is an artificial person who does not have his own heart, mind, soul etc. It cannot be loyal to one or disloyal to another. It is neither friend nor enemy of anyone. In fact the company does not have any character of its own. But sometimes a company can assume the character of an enemy. 

 21) Permanent Existence: The existence of the company is permanent. The main reason for this is that the shares of the company are transferable and the company has a separate existence from its members. As a result, if a new member is formed in the company or leaves the membership or the member dies or becomes insolvent or insane, there is no effect on the company. In fact, the company is born according to the provisions of the legislation. Therefore, the winding up of the company can also take place only after following the procedure described in the legislation. The company continues to run even if all the members of the company are dead. 

Leave a Reply

Your email address will not be published.