COMPANY AS LEGAL OR

JUDICIAL PERSON

Prof (Dr) R. K. Chopra

• General clauses act defines Person as :
• Any company or association or body of individuals,
whether incorporated or not.
• It can be said that, unless a particular statute
specifically stipulates to the contrary, an
incorporated company can perform every legal
transaction which any other person is authorized
to perform.
Prof (Dr) R. K. Chopra
The Companies Act, 1956, does not define a
company in terms of its features. Section 3
(1)(i) of the Act merely states that ―a
company means a company formed and
registered under this Act or an existing
company as defined in Section 3(1)(ii).
Section 3(1) (ii) lays down that ―an existing
company means a company formed and
registered under any of the previous Company
Law.
This definition does not clearly point out the
meaning of a company. In order to understand
the meaning of a company, let us see the
definition as given by different authorities.
Chief Justice Marshall- ―a corporation is an
artificial being, invisible, intangible, existing
only in contemplation of the law. Being a
mere creation of law, it possesses only the
properties which the Charter of its creation
confers upon it, either expressly or as
incidental to its very existence.
In the case of Arjun Prasad v Shantilal
Shankarlal Shah, AIR 1962 SC 1192, it
was held that, the word person includes
both a natural person ; a human being;
whether a man or child and an artificial
person; a corporation.

Prof (Dr) R. K. Chopra

A company may become a member of
another company, if the former is
authorized by its Memorandum of
Association to take shares; or if it takes the
shares in payment of a debt by way of
compromise

Prof (Dr) R. K. Chopra

Corporation: A Corporation is an
artificial being created by law having a
legal entity separate and distinct from
the individuals who compose it with the
capacity of continuous existence and
succession, notwithstanding changes in
its membership.
Prof (Dr) R. K. Chopra
Corporate aggregate: A
corporation aggregate has only one
capacity, namely its corporate
capacity. A corporation aggregate
may be trading corporation or a
non-trading corporation.
Prof (Dr) R. K. Chopra
The usual examples of a trading corporation
are:
(a) Charter companies
(b) Companies incorporated by special
Acts of Parliament
(c) Companies registered under
companies act.

Prof (Dr) R. K. Chopra

Examples of Non-trading corporations
are :
(a) Municipals Corporations,
(b) District Boards
(c) benevolent institutions,
(d) universities, etc.

Prof (Dr) R. K. Chopra

Corporation sole: It is a single person
constituted as a corporation in respect of
some office or functions such as a
bishopric or other ecclesiastical office or a
public trustee and as such is a legal person,
and as such, can be a member of a
company.
A corporation sole is different from a One
Person Company Prof (Dr) R. K. Chopra
Examples
Corporation Sole: Comptroller and Auditor
General of India (CAG), President of India etc.,
Corporation
Corporation Aggregate: Wipro, Reliance, Tata,
etc.

Prof (Dr) R. K. Chopra

Thank you

Prof (Dr) R. K. Chopra