Where companies act is not applicable:

1. Companies established under the special act of parliament such as The Reserve bank of
India, LIC of India, State transport corporation etc.
2. Partnership firms, cooperative societies, societies which are governed by the society’s
registration act of 1860.
3. Trusts which are governed by the Indian trust act 1882.

Characteristics of Company:

1. Separate legal entity: company and shareholders are different

2. Limited liability: if a investor enters a company by investing 1lakh then his total liability is
1lakh only.
3. Perpetual succession: eg: Tata groups has many Chairmen who took over after the earlier
one retired
4. Common seal: a company uses the common seal instead of signature.
5. Transferability of shares: shares can easily transferred.
6. Separate property: all the assets in the name of reliance industries
7. Capacity to sue: a share holder cannot be sued for any mistake but the manager can be
sued.