What is a company

Organizations need a lot of investment. Due to the huge investment, the risks involved are also high. When it comes to big business, two important limitations of partnership are limited resources and unlimited liability for partnerships. Partnerships in the form of companies have become popular to overcome the problems of partnerships. Investors and clients of various multinational companies are located all over the world.
In order to effectively utilize organizational and management capabilities to the fullest extent, limited liability companies need not only the support of their own institutions, but also clear and precise regulations. It is necessary to provide a brief overview of the business organization from the framework of the company law.
The business sector recognizes three main categories of business organizations
There are three types of partnerships
Persecution of each data (specified by civil law)
Persecution of companies (under civil and commercial law)
Persecution (controlled by civil and commercial law)
Under the common law tradition, it is difficult to determine the absolute equivalence between these partnerships and partnerships.
According to the Companies Act of 1956, a company is artificial, intangible, intangible, intangible, and exists only in consideration of the law. As a pure creature of law, it has only those characteristics that are created by its characteristics, which are express or attached to itself.
Can be clearly defined as
A company is defined as a group of people who donate or use their value to a particular trade or business. As a result, the people in the group share the resulting gains and losses (as the case may be).
Ordinary shares are usually expressed in money and are the capital of the company.
The person who participates in the contribution of common stock is a member.
The proportion of capital each member is entitled to is called the member share.
The shares are always transferable, subject to the restrictions and responsibilities of the rights to transfer shares.
The main features of the company are discussed below.
A company can only be created under the registration of the Companies Act.
Effective from the date of issuance of the company registration certificate.
At least seven people are required to form a listed company.
It takes at least two people to set up a private company.
These individuals will abide by the organization memorandum and comply with other legal requirements of the Companies Act regarding registration to form and form a company, whether or not they are responsible.
A company can be considered a fictional person (a person who cannot act on his or her own will). It must act through a board of directors elected or elected by company members.
The board of directors is the only mind of the company.
It has the right to acquire and dispose of property in its own name, to enter into contracts with third parties, and to sue and prosecute in its own name.
However, since it does not enjoy the rights of citizens, it cannot be considered a citizen.
A company is considered an independent legal entity and does not rely on its members. The credits credited by the company’s creditors can only be recovered from the property owned by the company and the company.
Individual members cannot be prosecuted.
Similarly, the company does not assume any responsibility for the personal debt of the member.
The company’s property can only be used for the company’s development, improvement, maintenance and welfare, and cannot be used for the personal interests of shareholders.
Members cannot claim ownership of the company with one hand or jointly.
Company members can enter into contracts with the company in the same way as any other individual.

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