Practicing Success
According to Chief Justice Marshal, what kind of entity is a company? |
A physical entity with tangible properties An invisible entity with no legal existence A person with limited legal recognition An intangible entity existing only in the eyes of law |
An intangible entity existing only in the eyes of law |
The correct answer is option 4- An intangible entity existing only in the eyes of law. A company means a company incorporated or registered under the Companies Act, 2013 or under any other earlier Companies Acts. 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”. A company usually raises its capital in the form of shares (called share capital) and debentures (debt capital.) |