Question

Jayant intends to start a business in the form of a company. But he has no idea about the company. Guide him about the following with reference to a company:
Perpetual succession
Common seal
Artificial person
Liability

Answer 1

1. Perpetual Succession: The company's existence is continuous, unaffected by changes in ownership or member deaths.
2. Common Seal: This official seal acts as the company's signature, validating its documents.
3. Artificial Person: A company is a legal entity capable of contracting, owning assets, and participating in legal proceedings.
4. Liability: Shareholder liability is limited, restricting their responsibility to the unpaid share value and safeguarding their personal assets from company debts.
These characteristics establish a company as a separate legal entity, offering its members stability and legal security.