What are the Characteristics of a company
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.