CS (company law)

Save Share

This query is : Resolved

Jyoti (Querist)

28 March 2011 Respected Experts,

The Expression "Corporation" or "body Corporate" is wider than the World "Company".

How? Please Explain.

Till now i know that company is a body corporate, Which is the creation of law.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

28 March 2011 A corporation is a legal entity that is created under the laws of a State designed to establish the entity as a separate legal entity having its own privileges and liabilities distinct from those of its members.
There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter and many of these chartered companies still exist. Most jurisdictions now allow the creation of a new corporation through registration.

Corporations exist strictly as a product of the corporate law.

An important (but not universal) contemporary feature of a corporation is limited liability. If a corporation fails, shareholders normally only stand to lose their investment and employees will lose their jobs, but neither will be further liable for debts that remain owing to the corporation's creditors.

Despite not being natural persons, corporations are recognized by the law to have rights and responsibilities like natural persons ("people"). Corporations can exercise human rights against real individuals and the state, and they can themselves be responsible for human rights violations. Corporations are conceptually immortal but they can "die" when they are "dissolved" either by statutory operation, order of court, or voluntary action on the part of shareholders. Insolvency may result in a form of corporate 'death', when creditors force the liquidation and dissolution of the corporation under court order, but it most often results in a restructuring of corporate holdings. Corporations can even be convicted of criminal offenses, such as fraud and manslaughter.

body corporate

Definition

Legal entity (such as an association, firm, government, government agency, institution) identified by a particular name. It comprises of a collection or succession of individuals who (in the view of law) have existence, rights, and duties distinct from their existence, rights, and duties as individuals. Also called corporate body or corporate entity.

A company is a form of business organization. It is a collection of individuals and physical assets with a common focus and an aim of gaining profits. This collection exists in Law and therefore a company is considered a "Legal Person".

In the United States, a company is a corporation—or, less commonly, an association, partnership, or union—that carries on an industrial enterprise."[1] Generally, a company may be a "corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing."

In English law, and therefore in the Commonwealth realms, a company is a form of body corporate or corporation, generally registered under the Companies Acts or similar legislation. It does not include a partnership or any other unincorporated group of persons.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now