The correct answer is Option (1) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
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List-I
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List-II
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(A) Separate Legal Entity
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(II) It can hold and deal with any type of property. It can enter into contracts and even open a bank account in its own name.
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(B) Perpetual Succession
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(III) The company being an artificial person created by law continues to exist irrespective of the changes in its membership.
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(C) Common Seal
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(IV) The company being an artificial person, cannot sign its name by itself.
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(D) May Sue or be Sued:
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(I) A company being a legal person can enter into contracts and can enforce the contractual rights against others.
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(A) Separate Legal Entity — (II): Once incorporated, a company is distinct from its members. It can own property, incur debts, and open bank accounts in its own name.
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(B) Perpetual Succession — (III): A company’s existence is not affected by the death, retirement, or insolvency of its members. Since it is created by law, it can only be dissolved by law. As the saying goes, "Members may come and members may go, but the company goes on forever."
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(C) Common Seal — (IV): Since a company is an "artificial person," it cannot physically sign documents. The common seal acts as the official signature of the company to validate its legal documents and contracts.
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(D) May Sue or be Sued — (I): Being a legal person, a company has the right to take legal action against others to enforce its contracts and, conversely, can be held liable and sued in a court of law.
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