Unit - 55 : Definition and Features of a Company Section 3 of the Companies Act , 1956 defines a company as ' a company formed and registered under this act , or an existing company.'
Section 2(20) of the Companies Act , 2013 defines company as ' a company incorporated under the companies act 2013 or under any previous company law i.e. those incorporated under Section 3 of Act , 1956 shall remain within the precincts of definition of company under the new act.
Features of a Company : 1. Registration 2. Artificial Legal Person 3. Independent Corporate Personality 4. Limited Liability 5. Perpetual Succession 6. Separate Property 7. Transfer of shares 8. Common seal 9. Corporate veil
Difference Between :
COMPANY PARTNERSHIP Registration Compulsory Not Compulsory _____________________________________ No. of Members Minimum 2 For Pvt , 7 for Public 2 Maximum 200 For Pvt, 10 in Banking No Limit For Public 20 for others. _____________________________________ Legal Status Has Does not have _____________________________________ Ownership of Property Owned By Owned By Company Partners _____________________________________ Management BOD Partners _____________________________________ Perpetual Existence Has Does not have _____________________________________ Contracts Member of a Partner Company can contract cannot enter with the company into a contract _____________________________________ Liability Limited Except Unlimited for Companies with Unlimited liability _____________________________________