According to Indian Company’s Act 1956, A company is an artificial person created by law, having a separate legal entity, perpetual succession and a common seal.
The features of a JSC are explained below:
(a) Artifical person : It is the creation of law and has a distinct entity from its members. The business runs in the name of the company. It can be brought to an end by the law only.
(b) Separate legal entity : It acquires a separate legal entity from the day of its incorporation. Its assets and liabilities are separate from those of its members.
© Perpetual succession : Its existence is not effected by the coming and going of the members. It is created by law and the law can only bring it to an end by completing the separate legal procedure called winding up.
(d) Common seal : Being an artificial person, the agreements entered by Board of Directors on behalf of the company is approved equivalent of an official signature.
(e) Liability : The liability of members is limited to the extent of capital contributed by them. In events of loss, the members are liable to the extent of the unpaid amount of share held by them. The creditors can only use the assets of company to settle their claims.