Features of company

A company, as a distinct legal entity, has several key features:

1. **Separate Legal Entity**:

   - A company is recognized as a separate legal entity distinct from its shareholders and managers. It can own property, sue and be sued in its own name.

2. **Limited Liability**:

   - Shareholders' liability is limited to the amount they have invested in the company. They are not personally responsible for the company’s debts and obligations.

3. **Perpetual Succession**:

   - The company’s existence is not affected by the death, insolvency, or departure of any of its shareholders or directors. It continues to exist until it is legally dissolved.

4. **Transferability of Shares**:

   - Shares in a company are generally transferable, allowing for changes in ownership without affecting the company's operations. This is more freely exercised in public companies than in private ones.

5. **Separate Management**:

   - The company is managed by a board of directors, which is elected by the shareholders. This separation of ownership and management allows for professional management of the company’s affairs.

6. **Common Seal**:

   - Historically, companies used a common seal (a stamp or embossed emblem) to signify official company documents. While not as common today due to digital signatures, it remains a feature of some jurisdictions.

7. **Capacity to Sue and Be Sued**:

   - A company can enter into contracts, and if disputes arise, it can initiate or defend legal actions in its own name.

8. **Raising Capital**:

   - Companies can raise large amounts of capital by issuing shares and debentures. Public companies, in particular, can raise funds from the public through stock exchanges.

9. **Regulatory Compliance**:

   - Companies must comply with various statutory regulations, including filing annual reports, holding regular meetings (e.g., Annual General Meetings), and adhering to financial disclosure requirements.

10. **Taxation**:

    - Companies are taxed as separate entities. The profits of the company are taxed at the corporate tax rate, and dividends distributed to shareholders are often subject to further taxation.

These features collectively contribute to the structure and functioning of companies in the business world.