✅ Features of a company
✅ Characteristics of a company
✅What is a company? What are the features/characteristics of a company
A corporation or company is a legal entity with its own legal personality, perpetual succession, and a common seal.”. It is a group of people that contribute their money or money’s worth to invest in common stock and use it. The capital of the corporation is the amount of common stock that has been given in terms of money. Members are those who contribute to it or to whom it belongs. Each member’s share is the amount of capital to which he is entitled.
Characteristics/ feature of a company
1. Artificial person:- A corporation or company is a legal entity that only exists in the perspective of the law. The firm conducts business on its own account. It has the legal right to sue and can be sued, as well as the ability to possess property and have a bank account. It might also be a creditor and own money.
2. Created by law :- Only by registering a business can it be founded. To be registered, a firm must complete certain processes. To be dissolved, it must complete a number of legal requirements.
3. Separate legal entity:- A company has a separate legal entity that is unaffected by membership changes.
4.perpetual succession :- A company is a living entity that has existed for a long time. Its existence is unaffected by its members’ admission, retirement, death, or insolvency. Only the law has the power to put an end to it.
5. Limited liability :- Every member’s responsibility is limited to the amount he has committed to pay the company on the shares he owns.
6. Voluntary association:- A corporation is a non-profit organisation. It has no legal authority to compel anyone to become a member or shareholder.
7.Transferability of shares: A company’s shares are freely transferable by its members, with the exception of private companies, which may have some restrictions.