Accountancy Part AAccounting for Shares

Who has given the following definition of a company?“A company is a p…

Who has given the following definition of a company?

“A company is a person, artificial, invisible, intangible and existing only in the eyes of law. Being a mere creation of law, it possesses only those properties which the charter of its creation confers upon it, either expressly or as incidental to its very existence”.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Chief Justice Marshal

NCERT (2026-27 edition):
Accounting for Share Capital – “… According to Chief Justice Marshal, “a company is a person, artificial, invisible, intangible and existing only in the eyes of law. Being a mere creation of law, it possesses only those properties which the charter of its creation confers upon it, either expressly or as incidental to its very existence”.”