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A Company is a voluntary
association of person formed for the purpose of doing some business.
A company is a juristic person (in the eyes of law it is a person).
The company can sue and it can be sued. It has its own name and a
separate legal entity, distinct from its members who constitute it.
A company has its own property, the members (shareholders) can not
claim the property of the company as their own property.
A company is a legal person
but it is not a citizen.
The liability of the members
(shareholders) of the company is limited to the amount of shares
they hold.
Shares of a company are easily
transferable. It means the business can be transferred from one hand
to another without attracting and taxes and duties.
AUTHORISED SHARE CAPITAL (ASC):
The Companies act, 1956 limits the
power of board to issue share within the limit of ASC. The ASC can
be increased at any time after complying some formalities of the
Act.
PAID UP SHARE
CAPITAL:
That portion of ASC for which
shares have been issued by the company and shareholders had paid for
those shares. |
