Definition of company
According to Section 2(20) of the Companies Act 2013, “Company means a company incorporated under this Act or any previous company law.” A limited company can be of the following two types: DEFINITION OF COMPANY LAW
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PREAMBLE OF THE CONSITITUTION
(I) is limited by guarantee
(II) Limited by degrees.
The word “company” is derived from the Latin words cum and penis, meaning together and bread, respectively. Initially the word ‘company’ meant a group of people who had gathered for a meal. After that, the word company was also used for such groups or organizations that have gathered for the fulfillment of a common purpose. In this way the word company started being used for business and non-business associations.
According to Justice Lindley, “A company is an association of several persons in whom they employ capital or property for the enjoyment of some joint purpose. This joint capital is the capital of the company and is expressed in the form of money.” The contributors to the capital are the members of the company. The part of the capital to which each member is entitled is called its shareholder.”
According to Prof. Hanne, a company is an artificial person created by law having a separate and permanent person and a common seal. DEFINITION OF COMPANY LAW
conclusion
Analyzing the above mentioned definitions of company, it is known that “a company is an artificial person created by law and incorporated under this Act or any previous company law, has a permanent existence separate from its members, the liability of its members is limited.” and has a common seal.”
Characteristics of company
Some of the salient features of the company are described below
- Separate legal entity
- Perpetual succession
- Common seal
- Limited liability
- Transferability of shares
- Separate property
- Capacity to sue
- Voluntary and incorporated association
- Artificial legal person
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