Study with Shivarajput184

Section – A  (Each question carries 10 marks) Q1. Company is an artificial person by law with a perpetual succession and is different from the members constituting it. Comment. Answer:  A company is not a natural person, but law treats it as an artificial person with rights and obligations. Main Points: Artificial person – Created by law, can own property, enter contracts, sue and be sued. Perpetual succession – Company never dies; members may change but company continues. Separate legal entity – It is different from shareholders. Limited liability – Members are liable only up to their shares. Case law – Salomon v. Salomon & Co. confirmed company’s separate legal status. Conclusion:  A company is an artificial person, distinct from its members, with perpetual succession. Q2. Define a private company. Distinguish between a private company and a public company. Describe the procedure for converting a private company into a public company. ...