An introduction to company law is presented. A company is defined as an artificial person with separate legal identity and perpetual succession created under the Companies Act, 2013. Key features of a company include that it is an artificial person, has separate legal identity from its members, has perpetual succession meaning it does not end when members change, has the capacity to own and transfer property, can enter into contracts, sue and be sued, and members have limited liability. The Companies Act, 2013 replaced the previous Companies Act of 1956 and includes provisions divided into schedules, chapters and sections that establish rules for companies.

1. INTRODUCTION TO COMPANY LAW
PRESENTED BY-:
CS RIDIMA MISHRA

2. INTRODUCTION TO COMPANY LAW
COMPANY
ARTIFICIAL
PERSON
PERPETUAL
SUCCESSION
COMMON
SEAL
SEPARATE
LEGAL
IDENTITY

3. WHAT IS A COMPANY ?????
Definition- “Company is an artificial person
having separate legal identity with perpetual
succession and a common seal created under
Companies Act,2013.”
*Companies Act,2013 previously was Companies Act,1956

4. FEATURES OF COMPANY-
1. Artificial Person-
• It is a person created by Law.
• It act as a legal person which can enter into contracts, possess
property in its own name, sue and can be sued by others.
2.Separate Legal Identity-
• It has separate legal identity from its members.
• It bears its own name, acts, seal and assets are separate.
• Shareholders cannot bind company by their acts.

5. FEATURES OF COMPANY-
3. Has nationality and citizen-
• Nationality and citizen through place of registration or
incorporation.
4.Limited Liability-
• The liability of the shareholders extends to the contribution
of the capital of the Company to the nominal value of shares.

6.  Exceptions of Limited Liability-
 If no. of members reduced below minimum number of
members required and company carries on business for more
than 6 months every member will be liable personally.
 Company is incorporated unlimited company.
 Company is incorporated by furnishing false or incorrect
statement.
 In the course of winding up it appears that any business of the
Company has been carried on with an indent to default
creditors.

7.  Exceptions-
 Where it is proved that the prospectus of the Company has
been issued with intent to defraud the applicants of Company
 Where Company fails to pay deposit or part within the time
specified.
 Where inspector report states that director, KMP, other
officer has taken undue advantage of any fraud conducted by
the Company

8. FEATURES OF COMPANY-
5. Perpetual Succession-
 A Company never dies, except when it is wound up as per law.
Being a separate legal identity it remains unaffected by death
or departure of any member. It means that membership
changes but it shall not affect Company’s continuity.
6. Separate Property-
 A company being a separate legal person is capable of owing,
enjoying, disposing property in its own name. No member
can claim himself to be owner of the Company’s property .

9. FEATURES OF COMPANY-
7.Transferability of Shares-
 The capital in a Company is divided into shares and
considered as movable property which can be transferred by
any member to any other member holding the respective
shares.
8. Capacity to sue and be sued-
 A company being a separate legal person can sue in its own
name or implement legal proceeding against a person and
also can be sued in its own name.

10. FEATURES OF COMPANY-
9. Contractual Right -
 A Company can enter into contracts for the conduct of the
Business in its own name.
 A shareholder cannot enforce a contract made by his
Company, nor he will be benefited by any contract.
10. Limitation of Action-
 Every Company has its own Memorandum ofAssociation
where all the objects and powers of the Company is defined
and it cannot go beyond those powers.

11. Key features about Companies Act,2013-
 CA 2013 was passed by Parliament and was
approved by president on 29th August,2013.
 Some provisions of CA 1956 are still in force.
 CA 2013 has been divided into-
No. of Schedules- 7
No. of Chapters- 29
No. of Sections- 470

12. Doctrine of Lifting of or piercing the CorporateVeil-
• Company being a separate legal entity it can be only used for
legitimate business .
• Court will break through the corporate shell when any
fraudulent and dishonest use is made of the legal entity and it
shall take the legal action by looking behind the Corporate
entity as though no member is separate from the Company.
• This is the applicability of Doctrine of Lifting of Corporate
veil.
• All members involved shall be liable for all the debts and
obligations of the Company.