ompanies Act 2013 CA Foundation
Meaning Company meaning as per dictionary "a number of individuals gathered together" . According to Chief Justice Marshall, "a corporation is an artificial being, invisible, intangible, existing only in contemplation of law. Being a mer creation of law, it possesses only those properties which the charter o its creation confers upon it, either expressly or as accidental to its very existence. Section 2 (20) of Company act 2013- "Company means a company incorporated under this Act or under any previous company law .
Features .Following are the features of Company- Separate Legal Entity Its existence is distinct and separate from that of its members. A company can own property, have bank account, raise loans, incur liabilities and enter into contracts. Case Law A member does not even have an insurable interest in the property of the company. The leading case on this point is of Macaura v/s Northern Assurance Co. Limited (1925) Perpetual Succession: Members may die or change, but the company goes on til it is wound up on the grounds specified by the Act. Limited Liability: The liability of a member depends upon the kind of company of which he is a member.
Features Following are the features of Company Artificial Legal Person - A company is an artificial person as it is created by a process other than natural birth. It can do everythin which any natural person can do except be sent to jail, take an oath, marry or practice a learned profession. Hence, it is a legal person inits own sense Common Seal Common seal is the official signature of a company, which is axed by the officers and employees of the company on its every document. (Optional "Amended through The Companies (Amendment) Act, 2015)
CORPORATE VEIL THEORY Corporate Veil: Corporate Veil refers to a legal concept whereby the company is identified separately from the members of the company. The Salomon Vs. Salomon and Co Ltd. laid down the foundation of the concept of corporate veil or independent corporate personality. Lifting of Corporate veil - It means looking behind the company as a legal person, i.e., disregarding the corporate entity. Company formed for fraud/improper conduct or to defeat law [Gilford Motor Co. vs. Horne] To avoid a legal obligation: (Workmen of Associated Rubber Industry Itd., v. Associated Rubber Industry Ltd.) To protect revenue/tax: [Dinshaw Maneckjee Petit]
Ca Anubhav Jain
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