Company act 1956

Features of company-

Company is a formal organization that is established according to rules regulations of concerned government. In India central government makes an act in 1956 for the performing of function of business in India. This act is known as company act 1956. There are many amendments in this act but it is the pillar of company in India. Every company that performs their function follow the rules, regulations of this act. The feature of company is as below-

1. Artificial legal person- it is the first feature of company. Company is an artificial person created according to rules regulations, law of country. So, company possess all types of right that a person possess. 

2. Seperate legal entity- a company is a legal person. So, it has a separate legal entity. It can open bank account, issue cheque, accept cheque and so on. So, there is no formal relationship between company and founder. 

3. Common seal- a company is a legal person. It has its own identification in the economy. So, it has a particular and peculiar common seal that make him different from other organization. 

4. Limited liability- company is establish for the development of common man, country. So, there is limited liability of founder member in the performing the function of business. 

5. Transfer of share- every company issues shares. The share of company can be transferred from one person to other person, one firm to other firm, one organization to other organization and so on. 

6. Separate management- every company has a management it's management is different from its founder member. The management can take all decision that is beneficial for the development of company. There is no interference of founder in the decision of management. 

7. Perpetual succession- the life of company is unlimited. It's share, asset is transferred from one generation to other generation at continue basis. There is no impact of changing shareholders in the life of company. 

8. One share one vote- company is a democratic organization. All the decision of company is taken by Democratic way. So, every shareholders has a similar right of voting. The value of vote is equal. 

So, we can say that company is a legal, democratic for form of business that is established according to rules, regulations,law of concern government and plays an important role for the development of common man, society, nation and so on. 

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