10 Questions
What is the definition of a company according to Prof. Haney?
According to Prof. Haney, a company is an artificial person created by law having a separate legal entity with perpetual succession & a common seal.
List 3 characteristics of a joint stock company according to Dr. Pooja Talreja.
According to Dr. Pooja Talreja, the characteristics of a joint stock company are: (1) Separate legal entity, (2) Perpetual existence, and (3) Limited liability.
What is the Corporate Veil Theory and how does it protect the members of a company?
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.
What are the three classifications of a company according to Dr. Pooja Talreja?
According to Dr. Pooja Talreja, the classifications of a company are: (1) Chartered Companies, (2) Statutory Companies, and (3) Registered Companies.
Explain the concept of ownership and management being separate in a joint stock company.
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.
What is the purpose of a common seal in a joint stock company?
The common seal is used for officially signing and authenticating company documents and contracts.
Explain the concept of perpetual succession in the context of a joint stock company.
Perpetual succession means that the company continues to exist regardless of changes in its membership, allowing it to carry on its activities indefinitely.
How does the Corporate Veil Theory protect the members of a company?
The Corporate Veil acts as a shield, preventing the members from being held personally liable for the actions or liabilities of the company.
What is the significance of the capacity to sue and be sued for a joint stock company?
It means that the company has the legal right to initiate legal proceedings or defend itself in a court of law.
Differentiate between a Chartered Company and a Statutory Company based on their classifications.
A Chartered Company is formed by a royal charter, while a Statutory Company is created by a specific statute or law.
Test your knowledge of the Companies Act with this quiz. Explore the definition and characteristics of a company according to Prof. Haney and Dr. Pooja Talreja. Evaluate your understanding of the legal aspects and structure of joint stock companies.
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