Characteristics of a company
Following are the characteristics of a company:
Voluntary association: A company is a voluntary association of persons. No law can compel persons to form a company.
Separate legal entity: Company is an artificial person. It has a separate legal entity which is separate and distinct from its members.
Common seal: A company may have a common seal which can be affixed on the documents.
Perpetual succession: A company continues for ever. Its continuity is not affected by the changes in its members. It can be wound up only by law.
Limited liability: The liability of the shareholders of the company is limited to the extent of face value of the shares held by them.
Transferability of shares: The shares of a company are freely transferable except incase of a private company.