Mention any three characteristics (features) of the company.
A company has the following characteristics:
(a). Legal artificial person: A joint stock company is an artificial person created by law.It makes the company as human being. The company can purchase and sell its properties in its own name. It can sue and be sued by others in matter of dispute and conflict. As a real person, it can carry out lawful business activities and make other business contract.
(b). Transferability of share: The capital of the company is divided into small part i.e. share. A company can raise large amount of capital by selling such shares to the public . The shares issued by company are transferable except in case of private companies.
(c) Perpetual existence: A company is established by law and only law can dissolve it.A member or shareholder may join and leave the company , but it runs forever tills its liquidation . The death , insolvency, inability or lunacy of the member of shareholder does not affect the life of a company.
