DEFINITION OF COMPANY:

A company is an artificial person, incorporated association created by law, having a separate

entity with a perpetual succession and a common seal, which is not a firm. OR Company means a
company formed and registered under companies Act 2017 or the company law;

Corporate personality
Corporate personality is a legal entity recognized in English and Indian law, allowing corporations to
have rights, duties, and property. It is an artificial person with the capacity to own property, incur
debts, borrow funds, hire staff, make contracts, and be sued in the same way as an individual. A
corporation's members are its owners, but they may also be its debtors.
The concept of corporate personality was recognized in the case of Saloman v. Saloman &
Co. Ltd., where Solomon, a leather merchant, converted his business into a Limited Company-
Solomon & Co. Ltd. The company purchased Solomon's business for £39,000, paid £10,000
debentures, £20,000 in fully paid £1 shares each, and the balance in cash. Within a year, the company
ran into a financial crisis and liquidation proceedings began. The House of Lords held that the
company was validly constituted since the Act only required seven members to hold at least one
share each.
Suppliers are not agents of the company and cannot bind it by their acts. The company does
not hold its property as an agent or trustee for its members and cannot sue to enforce its rights or
liabilities. Incorporation is the act of forming a legal corporation as a juristic person, conferring rights
and obligations and being dealt with in accordance with law.
The Calcutta High Court in Re. Kondoli Tea Co. Ltd., (1886) ILR 13 Cal. 43, recognized the
principle of the separate legal entity even earlier than the Saloman v. Saloman & Co. Ltd. case.

To establish or recognize the corporate personality of any corporate entity or organization,

three conditions need to be fulfilled:
 There should be an organization or association formed by several individuals with a
specific purpose or goal.
 The said entity should have different organs or departments that can act upon
corporate functions, such as management, sales, human resources, import and export,
etc.
 The organization or association shall have a ‘will’ as per legal fiction.
Conclusion:
From the date of its incorporation, a company becomes in law a different person altogether from the
member who composes it. Thus, an incorporated company has a legal personality distinct from that of
its members from the date of its incorporation.
A company is an artificial person according to the law. It is capable of exercising rights,
carrying out obligations, and holding property in its own name. As a result, the law was the only
source of inspiration for the idea of corporate personality. The corporate personality of a corporation
under the 2013 Companies Act is the best illustration of this. According to the legislation, such a
corporation has its own legal identity. The members and representatives of such a corporation serve
as its representatives. However, unlike a regular person, these corporations remain indefinitely.