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It is invisible, intangible, immortal and exists only in the eyes of law. It has no
body, no soul and no conscience; it is regarded as an artificial person.
4. Distinct Legal Entity: A company is a legal person having a juristic
personality entirely distinct and independent of the individual persons who are its
members. It enjoys in many respects the right of a natural person in the eyes of
law.
It can own property, conduct a lawful business, enter into contracts with others,
buy, sell and hold property, all in its own name under its own seal. It can file a
suit against others and can be sued against.
5. Perpetual Succession: A company has perpetual existence i.e. its existence
is not affected by the death or lunacy or insolvency or retirement of its member.
Members may come and go, but the company continues its operations so long as
it fulfils the requirements of the law under which it has been formed. Thus, a
company has a perpetual succession irrespective of its membership.
6. Limited Liability: Liability of members of a limited company is limited to the
face value of the shares subscribed by each of them. Members cannot be asked
to pay anything more than what is due or unpaid on the shares of the company
held by them.
In no case the personal property of the members of a company can be attached
to satisfy the claims of creditors of a company.
7. Transferability of Shares: Members of a public limited company are free to
transfer the shares held by them to any one members for either to purchase or
sell the shares.
8. Diffused Ownership: Ownership of a company is in the hands of a large
number of people. In case of Private Ltd. Company, the upper limit is up to 50. In
case of a public Ltd. Company there is upper limit to the number of members.
Any individual is free to acquire the share of any company and become to the
owner to that extent only. As such ownership is spread among a number of share
holders.