Which of the following is not a feature of the company ?

The correct answer is Option (4) → A company always has unlimited liability.

A company is an artificial person created by law. The liability of its members is limited to the unpaid amount on the shares they hold, so a company does not always have unlimited liability. That is why Option (4) is the one statement that is not a feature. Unlimited companies are permitted by the Act, but they are not found in India and are never the rule.

• Option (1) Company may sue or be sued. — A feature of a company. Being a legal person, it can sue and be sued in its own name.

• Option (2) A company has its own seal. — A feature of a company. It cannot sign by itself, so its common seal acts as its signature.

• Option (3) A company has a separate legal entity. — A feature of a company. It is distinct from its members and owns property and makes contracts in its own name.