A
I was recognised after the famous case of Saloman Vs. Saloman and Co. Ltd which clarified that a company has its own identity independent of it's member. A member cannot be liable for the acts of the company and the company debtors and not the stakeholders debtors.
Which feature am I?
Separate Legal Existence
According to this feature a Joint Stock Company continues to exist regardless of changes in its membership. The death, retirement, or insolvency of a shareholder or director does not affect the existence of the company.
The company has an uninterrupted life.
Perpetual Succession
The liability of the shareholders is restricted to the amount unpaid on the shares they hold. They are not personally liable for the company’s debts beyond their investment.
Limited Liability
This feature gives liquidity to the investment i.e one person can transfer share to another without affecting the continuity of the business.
Transferability of Shares
The company, being an artificial person, cannot sign documents itself. It uses an official signature to validate documents. Acts done under this signature are considered legally binding.
Common Seal.
In a Joint Stock Company, owners (shareholders) are different from managers (Board of Directors). Shareholders elect directors to manage day-to-day affairs and are not directly involved in the same.
Separation between ownership and control
A Joint Stock Company is formed by individuals coming together to carry on a business for profit. They contribute capital and agree to share profits and losses.
Voluntary Association
A company is created by law and has a legal identity separate from its members. It can own property, sue, and be sued in its own name. It exists only in the eyes of law, not physically like a human being.
Artificial Legal Person.
Since the company needs large sum of money, this capital is divided into large number of shares of small value, which are then purchased by people from all walks of life.
Corporate Finance.
I am owned by only one individual who provides the capital and is the sole owner. This makes decision-making quick and independent.
Which type of company am I and what is this feature?
Single Ownership
I must have at least one director. The same person can act as both owner and director. This allows me to run with minimum administrative burden.
Who am I and which feature help's me do this?
Minimum One Director
(Bonus points for - how many max directors can be added?)
I enjoy simplified compliance requirements, such as no need to hold annual general meetings or file many reports. I am the go to choice for individuals running buinesses.
Which feature am I?
Limited Regulatory Compliance