features of company

Features of company:-
what are the feature of a company

There are many features of a company. I can explain all the features in points

Registered association :-

A company is an association of persons. A company may be registered under the companies ordinance 1984 or under the special of the parliament . Any how the company is register under the law in force.

Legal person:-

A company is formed as a separate and independent person. The company is known as legal person after registration. A company can control with others in its own name.

Common seal :-

A company is an artificial person. The company must have it common seal. The seal is issue as signature of the company to make agreements. At least two directors must witness the documents.

Long life :-

A company has a long life.it has no link with the life of members. When the director act upon the law an share holder do not pass a resolution for winding up the company cannot die. Thus company has long life as compared to other businesses.

Legal entity :-

A company is created under the law. It has separate legal entity. The shareholder and the company are different from each other. The change in the membership cannot affect the position of the company.

Limited liability :-

The liability of shareholder is limited up to the amount of shares purchased. The private of the shareholder can be not use to pay business debts. It is a charm for the owners to start risky venture.

Separate management :-

The shareholders may not like to participate in management. The management is separate form the owners. The shareholders elect the directors to manage the business affairs.

Many members:-

The capital of a public company can be contributed by many investors. The minimum number of members may be fixed but upper limit of shareholder is not fixed.

Separate property :-

The property if a company is separate from the property of its shareholders. The company can buy and sell property in its own name.

Share transfer:-

The shares of public limited company are transferable.the shareholder can sell in open market.the transfer of shares goes on throughout the life of a company.

Democratic setup :-

The shareholders elect the directors through votes. The voting rights are linked with the number of shares held. The directors can elect managing director and chairmen.

Legal scale business :-

A large scale is able to supply sufficient goods at reasonable rates to the consumer. A large scale business can compete in the market due to quality output.

Capacity to sue :-

A company has the power to sue the shareholder and the other people. The company can protect its rights through court of law.

High fixed cost :-

The company operates on large scale basis. Its fixed cost is high. When there is depression there is highest loss.