FEATURES OF AN

INCORPORATED COMPANY
UNDER COMPANIES ACT 2013

PRESENTED BY-
ASHUTOSH KUMAR
ROLL NO-17005
COMPANY
 According to companies act 2013,
“company is an artificial person. It
is an invisible and intangible
person having a separate legal
entity from its members with
perpetual succession.”
INCORPORATION OF A COMPANY

 Incorporation involves the

transformation of a business into a
legal entity which is recognized by law.
A business becomes a separate
corporate entity after incorporation.
There are various types of companies
that a business can get incorporated as.
FEATURES OF AN INCORPORATED
COMPANY
 Separate Legal Entity- The company
is a legal person (artificial) having a
distinct entity from its members.
Cases:
Salomon v Salomon
Lee v Lee’s Air Farming
People’s Insurance Co
Common Seal- Signature of the company

Ability to own property- A company

can own property in its own name.
Cases
Abdul Aziz b. Atan

 Ability to Sue and be Sued- A company

can sue and be sued in its own name. Any
wrong done to the company, only the
company can take action.
Cases:-Foss v Harbottle
 Transfer and Transmission of Share-
According to section 44 of companies act,
2013.

 Limited Liability- According to section

3(2), liability of members is limited, depends
to the type of company i.e. limited by shares
or limited by guarantee.
Cases
Salomon V Salomon
 Perpetual Succession- A company shall
exist until properly wound up or stuck off
from the register.
It’s life span does not depend on the life of
its members.
Cases
Abdul Aziz b. Atan
THANK YOU