A company is a voluntary association formed by people to carry on a certain business for profit. People contribute their capital in forms of the shares in the company. Company works in its own name under a common seal. It has separate entity from its members.
The analysis of the various definitions of a company brings out the following features.
A company is a voluntary association of persons joining hands with a common motive. For the formation of the private company, there must be at least two & maximum fifty members limited, while in public company , minimum are seven members and maximum are no restriction. A company is called an artificial person. It is a person crested by law.
The company being an article person has many of the rights of natural person. This is most important characteristic of the company that the liability of each shareholder of the company is limited up to the value of the share purchased by him. The ownership and the management of the company are two separate bodies. The shares of the company have full right to transfer their shares to any one without consulting other shareholders. A company has a long life compared to other forms of the business organizations. If any of the shareholder migrates, dies, become insolvent or lunatic, it will not affect the continuity of the life of the company. The company can, however, be wound up through compliance with the provision of companies ordinance of Pakistan, 1984.
The analysis of the various definitions of a company brings out the following features.
A company is a voluntary association of persons joining hands with a common motive. For the formation of the private company, there must be at least two & maximum fifty members limited, while in public company , minimum are seven members and maximum are no restriction. A company is called an artificial person. It is a person crested by law.
The company being an article person has many of the rights of natural person. This is most important characteristic of the company that the liability of each shareholder of the company is limited up to the value of the share purchased by him. The ownership and the management of the company are two separate bodies. The shares of the company have full right to transfer their shares to any one without consulting other shareholders. A company has a long life compared to other forms of the business organizations. If any of the shareholder migrates, dies, become insolvent or lunatic, it will not affect the continuity of the life of the company. The company can, however, be wound up through compliance with the provision of companies ordinance of Pakistan, 1984.
