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Define company and explain its features?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked almost 3 years ago

Hi, What is company?Explain its features and discuss about the various types of companies?

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9 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Hi, C means common seal -every company has a common seal of its own and every contract containing company's common seal is deemed to be entered by the company. S means seperate management and ownership I.e, in a company all the persons who are owners are not the ones who manage the company. The management of the company is with few representatives of the owners.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

According to section 2 (20) of companies act 2013; "Company means a company incorporated under this act or under any previous company law" In simple words; company is an artificial person have separate legal entity, perpetual succession and a common seal. Various characteristics of a company are:- {Mnemonic to learn characteristics- TCS ke CS ne P LASI } T means transferability of share I.e, shares of a company are always transferable although the right to transfer may be more or less restricted depending on whether the company is public or private. C means common seal -every company has a common seal of its own and every contract containing company's common seal is deemed to be entered by the company. S means seperate management and ownership I.e, in a company all the persons who are owners are not the ones who manage the company. The management of the company is with few representatives of the owners. C means that company has a capacity to sue and be sued in its own name.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

T means transferability of share I.e, shares of a company are always transferable although the right to transfer may be more or less restricted depending on whether the company is public or private. C means common seal -every company has a common seal of its own and every contract containing company's common seal is deemed to be entered by the company. S means seperate management and ownership I.e, in a company all the persons who are owners are not the ones who manage the company. The management of the company is with few representatives of the owners

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

Various characteristics of a company are:- {Mnemonic to learn characteristics- TCS ke CS ne P LASI } T means transferability of share I.e, shares of a company are always transferable although the right to transfer may be more or less restricted depending on whether the company is public or private. C means common seal -every company has a common seal of its own and every contract containing company's common seal is deemed to be entered by the company. S means seperate management and ownership I.e, in a company all the persons who are owners are not the ones who manage the company. The management of the company is with few representatives of the owners. C means that company has a capacity to sue and be sued in its own name. S means separate property I.e, the company is capable to hold property in its own name and property of company is of the company and not of its manager or owners.

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Taniya makkar commented over 1 year ago

Don't you think that you have just copied my answer and this is wrong.

Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Kruthika, **MEANING OF COMPANY** Section 3 (1) (i) of the Companies Act, 1956 defines a company as “a company formed and registered under this Act or an existing company”. Section 3(1) (ii) Of the act states that “an existing company means a company formed and registered under any of the previous companies laws”. **FEATURES OF COMPANY** 1. Perpetual succession. 2. Limited Liability. 3 Common seal 4. Transferability of shares. 5. Capacity to sue and be sued **TYPES OF COMPANY** 1. Private limited company 2. Public limited company 3. Listed companies 4. Holding companies and subsidiaries 5. Guarantee and unlimited companies and limited liability partnerships

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 3 years ago

The word company ordinarily means an association of a number of individuals formed for some common object. When such an association is registered under the Companies Act, it becomes an artificial person with perpetual succession and a common seal. According to section 3 (1) (i) of the companies Act, a company means, “A company formed and registered under this Act or a existing company.” An existing company means a company formed and registered under any of the previous companies law.” The definition given in the companies Act is not exhaustive and does not reveal the true characteristics of a company. Lord Justice Lindley has given a comprehensive definition of a company. According to him, a company is, “An association of many person who contribute money or money’s worth to a common stock and employed for a common purpose. The common stock so contributed is denoted in money and is capital of the company. The persons who contribute it or to whom it belongs are members. The proportion of capital to which each member is entitled is his share. Shares are always transferable although the right to transfer them is often more or less restricted.” Characteristic of a Company On being incorporated, a company enjoys certain advantages over other associations. Such advantages are termed as the characteristic of a company and are discussed as under. 1. Perpetual succession. Unlike a nature person a company never dies. It is a entity with a perpetual succession. Its existence is not affected by the death, lunacy and insolvency of its members. A company is an immortal person. Member may come and members may go, but the company continues its operation unless it is wound up. The existence of the company is not affected by the death of all the shareholders even. Thus, where all the members of a company were killed by a bomb, company was deemed to survive. 2. Limited Liability. Limited liability of members is another important characteristic of a company. It is the reason why a great many people invest their money in limited companies. Liability of a member is limited to the face value of shares subscribed to by him. If the share are the fully paid up, his liability is nil. Unlike a partnership concern, where the liability of each partner is unlimited. In an incorporated company the members cannot be asked to pay anything more than what is due on the shares held by them. It may be noted that it is only the members’ liability for the company’s debs which is limited. The company itself, the artificial legal person, is always fully liable and so has unlimited liability. 3. Common seal. As a company is an artificial person it cannot sign its name on a contact. So it functions with the help of a seal. Common seal is used as a substitute for its signature. Every company must have a sale with its name engraved on it. Anything done under an agreement between the company and the third party requires recognition of the company in the form of an official seal unless exempted by the Act. 5. Transferability of shares. The shares of a company are freely transferable and can be sold or purchased in the share market. This is one of the reasons why people prefer to form companies than partnership. Section 82 of the companies Act recognizes the right of transferability of shares and provides that, “the share or other interest of any member shall be movable property transferable in the manner provided for in the articles of the company.” 6. Capacity to sue and be sued. On incorporation a company acquires a separate and independent legal personality. As a legal person it can sue be sued in its own name. Thanks

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Taniya makkar commented over 1 year ago

According to new act I.e. companies act 2013 section of defining a company has been changed to 2 (20) and it is not 3(1)(I) anymore.

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Taniya makkar answered almost 3 years ago

According to section 2 (20) of companies act 2013; "Company means a company incorporated under this act or under any previous company law" In simple words; company is an artificial person have separate legal entity, perpetual succession and a common seal. Various characteristics of a company are:- {Mnemonic to learn characteristics- TCS ke CS ne P LASI } T means transferability of share I.e, shares of a company are always transferable although the right to transfer may be more or less restricted depending on whether the company is public or private. C means common seal -every company has a common seal of its own and every contract containing company's common seal is deemed to be entered by the company. S means seperate management and ownership I.e, in a company all the persons who are owners are not the ones who manage the company. The management of the company is with few representatives of the owners. C means that company has a capacity to sue and be sued in its own name. S means separate property I.e, the company is capable to hold property in its own name and property of company is of the company and not of its manager or owners. P means perpetual succession I.e, the company's existence is not affected by existence of its members. L means limited liability - the liability of members of the is limited by the amount of shares unpaid or guaranteed as the case may be. A means association of persons I.e, company is incorporated having various members. S means seperate legal entity I.e, company has a legal entity seperate from its members. I means company is incorporated.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

1 : a business organization that makes, buys, or sells goods or provides services in exchange for money 2 : the state or condition of being with another person

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Open uri20170510 32134 1c996lj?1494421732 Anil answered almost 3 years ago

1 : a business organization that makes, buys, or sells goods or provides services in exchange for money 2 : the state or condition of being with another person 3 : someone or something you spend time with or enjoy being with

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