Some one said that "A company is an artificial person created by law having seperate entity with a perpetual succession and common seal."
A company can be described as an organization consisting of many persons called shareholders. The capital of a company is divided into different shares and the holders of these shares are known as shareholders. The shareolders are authorized by law to elect a board of directors and through it to act as one legal person in regard to its business. The liability of the shareholder is limited.
Characteristics of a company:
A company can be described as an organization consisting of many persons called shareholders. The capital of a company is divided into different shares and the holders of these shares are known as shareholders. The shareolders are authorized by law to elect a board of directors and through it to act as one legal person in regard to its business. The liability of the shareholder is limited.
Characteristics of a company:
- Artificial person created by law
- Capital
- Limited liability
- Perpetual Succession
- Common seal
- Representative Management
- Transfer of Shares
- Maintenance of Books
Types of Companies
1. On the basis of formation
- Chartered Company
- Statutory Company
- Registered Company
- Limited liability company
- unlimited liability company
- Public company
- Private company
- Government company
- Non-Government company
- Inland company
- Foreign company
