1.3 Meaning and Characteristics of the Company

A company = an artificial person created by law (registration under the Companies Act 2063), with perpetual succession and a common seal (the historical signature — now symbolic), capable of owning property, contracting, suing and being sued in its own name. Thecharacteristics (the exam seven): (1) separate legal personality (Salomon's gift); (2) limited liability (members' exposure capped at their share's unpaid amount, in a company limited by shares); (3) perpetual succession ("members may come and go, but the company goes on forever"); (4) transferable shares (the exit's design); (5) separate property (the company's assets are its own — not the members'); (6) artificial person — acts through its organs (general meeting, board, officers); (7) capacity and process — a juridical person with the law's procedural personality.