Company Formation Pvt. Company Formation Public Ltd. Company Formation Services. Company Description. A company as an entity has many distinct features which together make it a unique organization.

The essential characteristics of a company are following: Separate Legal Entity: Under Incorporation law, a company becomes a separate legal entity as compared to its members. The company is distinct and different from its members in law. It has its own seal and its own name, its assets and liabilities are separate and distinct from those of its members. It is capable of owning property, incurring debt, and borrowing money, employing people, having a bank account, entering into contracts and suing and being sued separately.

Limited Liability: The liability of the Chatacteristics of the company is limited to contribution to the assets of the company upto the face value of shares held by him. A member is liable to pay only the uncalled money due on shares held by him. If Characteristics Of Company assets of the firm are not sufficient to pay the liabilities of the firm, the creditors can force the partners to make good the deficit from their personal assets.

This cannot be done in the case of a company once the members have paid all their dues towards the shares held by them in the company. Perpetual Succession: A company does Characteristics Of Company cease to exist unless it is specifically wound up or the task for which it was formed has been completed.

Membership of a company may keep on changing from time to Charadteristics Characteristics Of Company that does not affect life of the company.

Insolvency or Death of member does not affect the existence of the company. Separate Property: A company is a distinct legal entity. The company's property is its own. A member cannot claim to be owner of the company's property during the existence of the company. Transferability of Shares: Shares in a company are freely transferable, subject to certain conditions, such that no share-holder is permanently or necessarily wedded to a company.

When Characteriztics member transfers his shares to another person, the transferee steps Vulcan Materials Company Macon Ga the shoes of the transferor and acquires all the rights of the transferor in respect of those shares.

Common Seal: A company is Charaxteristics artificial person and does not have a physical presence. Thus, it acts through its Board of Directors for carrying out its activities and entering into various agreements.

Such contracts must be under the seal of the company. The common seal is the official signature of the company. The name of Characteristics Of Company company must be Conpany Characteristics Of Company the common seal. Any document not bearing the seal of the company may not be accepted as authentic and may not have any legal force.

Capacity to sue and being sued: A company can sue or be sued in its own name as distinct from its members. Separate Management: A company is administered and managed by its Charactteristics personnel i. The shareholders are simply the holders of the shares in the company and need not be necessarily the managers of the company. One The Licensed Products Company Vote: The principle of voting in a company is one share-one vote i.

This is in direct distinction to the voting principle of a co-operative society where the "One Member - One Vote" principle applies i.

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What are the Characteristics of a company?

The management of a company is delegated and centralised. 7. Voluntary association: A joint stock company is a voluntary association of certain persons formed to carry out a particular purpose in common. Members of a company can join it and leave it at their own free will. 8. Artificial legal person: A company is an artificial person created by ...…

Company: Meaning, Characteristics and Kinds Business ...

Characteristics of Company 3. Kinds. Meaning and Definition of Company: Literary meaning of the word ‘company’ is an association of persons formed for common object. A company is a voluntary association of persons recognised by law, having a distinctive name and common seal, formed to carry on business for profit, with capital divisible ...…