Company Law Kls Lecture 1
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A company is a corporate body formed by an association of individuals for carrying out business purposes or other undertakings. It is a legal person separate from its members. Key characteristics of a company include that it has a large and fluctuating membership, is formed to acquire gain, and has legal personality that allows it to own property and enter into contracts. While a company has legal personhood, it is not a citizen under Indian law. Fundamental rights of shareholders can be protected if company rights are infringed by state action. A company can be considered an enemy if those controlling it act on behalf of an enemy country.
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The document discusses the meaning, nature, and characteristics of a company. It defines a company as an incorporated legal person with a separate legal personality from its members. Some key points:
1) A company is created by law and is regarded in law as a separate legal entity that can sue, own property, and be sued.
2) It has limited liability for its members, perpetual succession regardless of changes to its membership, transferable shares, and a common seal.
3) The document outlines various theories of corporate personality and discusses circumstances where the veil of incorporation may be lifted, such as for fraud, tax evasion, or to serve public interest.
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- The advantages of incorporating a company such as limited liability, perpetual succession, and the ability to raise capital.
- The distinction between a company and a partnership in terms of legal status, ownership of property, number of members, and liability.
- The process of registering a new company, which involves filing documents like the memorandum of association and articles of association and obtaining a certificate of incorporation.
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2. It summarizes key concepts like limited liability, legal personality of a company, and precedents like Salomon v Salomon that established these principles.
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