What are the Characteristics of a company ?

A company as an organization has many specific details which together form it a different management and its characteristics. The main characteristics of a company are following:

The Legal Entity :

The characteristics of every company is registered under the existing law and it has a different legal entity part of the members or shareholders of the company. The company is a fake person and it is a legal unit. It has certain rights and privileges of a natural person. A registered company has the right to acquire and ownership as well as transfer property in its own name. The act of a company can be held liable for no shareholders.

The Limited Liability members of a company

The liability of each member of a company is limited to the amount payable by him as an investor and the values of shared are subscribed by him.There is no member can be called upon to pay more than that amount may be the term of liability of the company .

The Transferable Shares of a company

The capital of a company consists of shares of a fixed value which are freely transferable. There is no doubt to be changing the value of market shares. But the paid up amount for a going concern amount of each share, which forms the support of distributing the earnings of the company registration between shareholders.

The Board of Directors function in a company

The board of directors of the company being an artificial person needs a human agent to function on its favor. The board of directors acts as its agent and work the day to day management of its tasks.

The Perpetual Succession of a registered company

A registered company maintains in itself Constance of the series. The condition or breakdown of its members does not change its members until anything disturbing fact takes place for twisting up subject to the position and provisions of the companies act for an registration.

The Common Seal of a company emblem

The characteristics of every company has a common seal and it is used as an emblem in all legal documents. The company is known in law as an artificial person. It has the right to enter into contracts in its own name registration in Chennai. Hence a common seal is main as a device to be used as the signature of the company.

Reference : http://www.solubilis.in/blog/the-characteristics-of-a-company/

The effect of registration of a company

http://www.solubilis.in/blog/2015/11/03/the-effect-of-registration-company/

The company registration act 1956

The Company Registration Act The registration of companies either public or private is mainly regulated unless not expressly prevented under the company registration Act 1956. The companies Act 1956 presents the companies which must register the companies which cannot register and the companies not formed under the Act which may register. The Companies Act which must register The company registration is relevant with the private limited company to be registered in the Act 1956. Where no company, organization or partnership consisting of more than ten persons shall be formed for the plan of carrying on the business of banking. Unless it’s registered as a company under this Act 1956. No company society or partnership consisting of more than twenty persons shall be created for the reason of taking on any other business. The company that has its object in the addition of gain by the company registration , association or partnership or by the particular mem...

Convert private company into a public company

The public company has the following procedures prescribed in the act for convert private limited company for their status. Similarly, a public limited company can convert itself into a private limited company. . Convert Private Limited Company into Public Limited Company A company which is initially incorporated as a private limited company . The company can change its status into that of public limited company. The public company has the following procedures prescribed in the act for conversion of status. Similarly, a public limited company can convert itself into a private limited company . Circumstances for conversion of private limited company into public limited company A private limited company can convert itself into a public limited company in the following circumstances : (a)voluntarily on its own volition (b) by reason of default (c)by operation of law Conversion of a private limited company into public limited company on own volitio...

SOLUBILIS

Search This Blog