Company is the best form of organization. Small savings are turned in to huge capital. Now, therefore that after going through the concept of sole proprietorship and firm it is concluded that company is the device to remove the deficiency of the both. For further understanding legal status of company is discussed as under:
Legal Status of Company
Buckley Justice in Stanely Case (1906) stated that “The word company has no strictly technical or legal
Definition of company as given in section 2 of the ordinance:
“Company means a company formed and registered under this ordinance or an existing company”
Another Definition of company:
“Company is an artificial legal person which can sue or to be sued.”
Thus a company is a non-natural officially permitted character which can sue or to be sued.
Etymology of the term: ‘person’: The term ‘person’ is derived from the Latin word ‘persona’ meaning ‘a
character in which certain rights and duties are attributed by law’.
Thus, in other words, it may be said that ‘person’ is a personality in which definite rights and duties are credited