As a separate legal entity, it bears its own name and operates under a company name; It has its own seal; their existence is separate and distinct from their members. Its members are their own owners but can simultaneously be their creditors because they have a separate legal entity. Even if a shareholder owns almost all of the capital, he cannot be held responsible for the actions of the company. Shareholders are not agents of the company and therefore cannot be bound to the company by their actions. Continuous Succession: The life of the company is not about the life of the members.
The law creates and dissolves the company. Death, bankruptcy Vanuatu Email List or share transfer of members does not affect the existence of the company in any way. In the case of a company, it can be said that members may come and members may go, but the company continues. It is a legal entity that came into existence by law and only the law can bring about its end, nothing else. Common Seal / Stamp: On incorporation, a company becomes a legal entity with continuous succession and a common seal. The common seal/stamp of the company is of great importance. It serves as the official signature of the company.
Since the company does not have a physical form, it cannot sign its name on a contract. The name of the company must be engraved on the common seal. A document that does not bear the common seal of the company is not genuine and has no legal significance. Limited Liability: Limited liability is another important feature of the company. If anything goes wrong with the company, his risk is only the amount of his shares and nothing else. A company's creditors cannot satisfy their claims beyond the company's assets. The liability of members of a 'limited by security' company is limited to the amount of security.