4 Important Characteristics Of A Private Limited Company | Online Chartered
Introduction : The private limited company is distinct entity incorporated under companies’ act 2013/1956. It is one of the most convenient ways of doing business in a legal format. Since this format of doing business is governed by particular statutory act it carries certain set of characteristics which defines the basic nature of company. Unlike a natural person, a company is an artificial judicial person which runs by its directors and owned by shareholders cum members. Directors of company are in fiduciary relationship with company. They are imposed with the responsibility to run the company in the best interest of company and its members. The directors are not the owners of company. The members of company who possess the shares/stock of company are the real owners of company. In this article we will discuss 4 basic characteristics of company which defines the company at its best. 1) Perpetual succession: The directors or members may come and go but company shall always...