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Salient Features of A Company

Incorporated Association:
A company is an artificial person which is created by law.

Separate Legal Entity:
A company can contract, sue and can be sued in its incorporated name & capacity.

Perpertual Existence:
The existence of a company is not affected by the death or change of its members.

Common Seal:
The common seal is affixed on all the documents by the person authorised to do so.

Distinction Between Ownership & Mgt:
The ownership vests with the Shareholders whereas it is run by Directors.

Not a Citizen:
The company doesn't enjoy citizenship rights & duties as it is not a natural person.

Maintenance Of Books [Sect. 209]:
A company is required by law to keep a prescribed set of books of accounts.

Periodic Audit:
A company is required by law to get its accounts periodically audited by a C.A.

Right Of Access To Information:
Each shareholder has a right to access information & inspect the books of A/cs.

Transferability Of Shares:
The shares of a company are freely transferable except in case of private company  which has certain restrictions on such transferability.

Limited Liability:
The liability of each shareholder is limited to the extent of issue price of shares acquired by him.

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