Explain the following terms in brief.
1.Perpetual succession.
2.Common seal.
3.Karta.
4.Artificial person.
1.Perpetual succession : A company being a creation of the law, can be brought to an end only by law. It will only cease to exist when a specific procedure for its ClBsure, called winding up, is completed. Members may come and go out, but the company continues to exist.
2.Common seal : The company being an artificial person acts through its Board of Directors. The Board of Directors enters into an agreement with others by indicating the company’s approval through a common seal.
3.Karta : In the Joint Hindu Family business, the business is controlled by the head of the family who is the eldest member and is called Karta. The karta has unlimited liability.
4.Artificial person : A company is a creation of law and exists independent of ife members. Like natural j persons, a company can own property, incur debts, I borrow money, enter into contracts, issue and be issued, but unlike them, it cannot breathe, eat, run, talk and so on. It is, therefore, called an artificial person.