"A Company is an Artificial Person, Created by Law with a PerpetualSuccession and a Common Seal." Explain This Statement.

Above statement is 100% correct. A company is an artificial person created by law. It has not any hand, leg, heart or physical body. Its existence comes when a company is formed and registered under company law. After coming in existence, it can do all business work like a human businessman. It can open his bank account. Company can buy or sell any asset on his own name. Company gets loan on his own name. It can sell own shares in the market.

There will not any effect on the company whether any shareholder will come or go. Company will live even if any shareholder sells his all shares. Other person who will buy the shares, will become the new owner of company. Company will not have any personal relation with shareholder. Every shareholder's liability upto his bought shares.

It has also its own a common seal. This seal will use in all the agreements which will be done on the name of company. Company can not sign, so it is very necessary for making common seal which company can use as showing his identity on every agreement. All the documents will only legal if authorized person's sign will be on the document and company's seal will be on same document.
Share above Content to Your Friends


accounting Accounting Concepts Accounting Course Accounting Education accounting equation Accounting Solutions Algebra Answer the Questions and Become Master Balance Sheet bank Bodybuilding Education Business Business Education Business Environment Business Solutions CA Calculus cameras car Car Driving Course Career Solutions carpentry Class 10 Maths Class 9 Maths Computer Computer Basics Computer Hardware Computer Networking Computer Software Computer Solutions cooking education Corporate Accounting Corporate Law cost cost accounting CSE Dailymotion depreciation determinant drawing Driving Education e-accounting earn money Economics Education Education Education Solutions Electronics Email Events Examination Finance Education Finance Solutions financial Financial Accounting FIR Football Gambling Gambling Addiction Goldsmith Google Adsense GST Guest Writers Health Education Help History Home Building Home Maintenance amp; Repair Index Number India Indian Language Inspiration insurance internal audit Internet Internet Forum Jobs amp; Careers Journal journal entries journal entry Kenya Laptop Basics Law Education Law Solutions Learning Lecture Legal Education Linear algebra Linear Programming Malaysia Management Accounting Management Education Management Solutions Marketing Education Mathematics Education matrices Medical and Surgery Education Mobile motivation MS Excel Nepal Nigeria organisation Other Pakistan Personal Finance Philippines Photography Photoshop Software Picture Plumbing Education Probability Profiles provision real estate rectification Relationships amp; Family Religious Studies Result Sahas Saudi Arabia Science Education Self-Learning Skating Slideshow Solution Spiritual Education Sports Statistics Statistics Education stock Story svtuition Tablet Education Tally Tally Solutions Tally.ERP 9 tax Tax Solutions teaching Teaching Education Tech Simplify Test Testimonials Travel Trigonometry tuition TV Shows UK USA variance analysis VAT vector Video Video on Demand videos Vocational Education Web design website Welding Skills Wife Window Movie Maker Wordpress working capital Youth youtube
Svtuition: "A Company is an Artificial Person, Created by Law with a PerpetualSuccession and a Common Seal." Explain This Statement.
"A Company is an Artificial Person, Created by Law with a PerpetualSuccession and a Common Seal." Explain This Statement.
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock