a company is a aritifical person created by law having seperate entity with perptual succesion and a common seal ? comment
Dear Student,
A company is a separate legal entity which is distinct from its directors, shareholders and promoters. It can enter into contracts, buy or sell property, sue and be sued, and carry on business in its own name. Being a separate entity, its life is not affected at all by the death, insolvency and retirement of its members.Hence, its succession is perpetual, that is, members may come and go but the company can go forever. Also, to carry on business in its own name, every company has its own common seal. Common seal is the official signature of the company. A company is bound by those documents which bear its common seal.
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A company is a separate legal entity which is distinct from its directors, shareholders and promoters. It can enter into contracts, buy or sell property, sue and be sued, and carry on business in its own name. Being a separate entity, its life is not affected at all by the death, insolvency and retirement of its members.Hence, its succession is perpetual, that is, members may come and go but the company can go forever. Also, to carry on business in its own name, every company has its own common seal. Common seal is the official signature of the company. A company is bound by those documents which bear its common seal.
Keep Posting!!