Companies Act Quiz

According to Prof. Haney, a company is an artificial person created by law having a separate legal entity with perpetual succession & a common seal.

According to Dr. Pooja Talreja, the characteristics of a joint stock company are: (1) Separate legal entity, (2) Perpetual existence, and (3) Limited liability.

The Corporate Veil Theory is a shield that protects the members from the action of the company. It means that if a company violates any law or incurs any liability, the members cannot be held liable. Shareholders enjoy protection from the acts of the company.

<p>According to Dr. Pooja Talreja, the classifications of a company are: (1) Chartered Companies, (2) Statutory Companies, and (3) Registered Companies.</p> Signup and view all the answers

<p>In a joint stock company, ownership and management are separate, meaning that the owners (shareholders) are not directly involved in the day-to-day management of the company. Management is usually carried out by appointed directors and executives.</p> Signup and view all the answers

<p>The common seal is used for officially signing and authenticating company documents and contracts.</p> Signup and view all the answers

<p>Perpetual succession means that the company continues to exist regardless of changes in its membership, allowing it to carry on its activities indefinitely.</p> Signup and view all the answers

<p>The Corporate Veil acts as a shield, preventing the members from being held personally liable for the actions or liabilities of the company.</p> Signup and view all the answers

<p>It means that the company has the legal right to initiate legal proceedings or defend itself in a court of law.</p> Signup and view all the answers

<p>A Chartered Company is formed by a royal charter, while a Statutory Company is created by a specific statute or law.</p> Signup and view all the answers