Mention any four features of east …

Most Important Features of a Company (Indian Companies Act, 1956)

1. Incorporated Association:

Company is an incorporated association of persons created by the law of the country. In India companies are formed and registered under the Companies Act 1956. Incorporation of a company requires registration of formal documents with the Registrar of Companies.

2. Independent Legal Entity:

A company has a legal entity distinct and separate from its constituent members (shareholders). It is an autonomous body, self-controlling and self-governing. It can hold and deal with any type of property of which it is the owner, in any way it likes. It can enter into contracts, open a bank account in its own name, sue and be sued by its members as well as outsiders.

3. Separate Property:

The corporate property is clearly distinguished from the members’ property and members have no direct proprietary rights to the company’s property but merely their ‘shares’. Change in the constitution of the company’s membership will not cause any realization or slitting of its property.

4. Perpetual Existence:

A company has a perpetual, succession. It has no allotted span of life. The mode of incorporation and dissolution of a company and the right of the members to transfer shares freely guarantee the continuity of the existence of the company quite independent of the life of the members. The existence of a company can be terminated only by law.