In this assignment, we will discuss a few questions related to company law as we all know that company law is the main body of businesses or companies. Company law regulates the business entities, conducting business by standardizing procedures, protecting the shareholder's interest, and other things. If we talk about the questions that have to be discussed that is, why do we need company law? What is the definition of company law? What are the characteristics of the company? What is the key area of company law?

Introduction
Company law refers to the body of legal rules, regulations, and principles governing the creation, operation, and dissolution of a company. It sets out the framework for forming management responsibilities and rights of corporations and their stakeholders including shareholders directors and employees.

The main purpose of company law is to regulate business entities. It establishes the legal identity of companies allowing them to own assets incur liabilities enter into contracts and be sued in their name. Another purpose of company law is to encourage investment, it defines the right duties and liabilities of shareholders, and company law encourages individuals and institutions to invest in business without the fear of personal liability. The next purpose of company law is to protect stakeholders, shareholders, creditors, and employees. The last purpose of company law is to facilitate business operations, it simplifies the process of conducting business by standardizing such as incorporation, issuance of shares mergers, and winding up.

Why Do We Need Company Law?

This question has always been raised when we study company law. When we talk about company we think of business. Business is nothing but a systemized series of transactions. There needn't be a specific law that tells people how to get together and carry out transactions. Even if we needed a law to bind us to our word and perform our part of the promise, the law of contracts exists to provide legal backing to our claims and those of the other parties to a transaction.

The law of the company serves a function beyond merely ensuring that contracts are performed, basically, in simple words the law of the company means that company law does more than just make sure agreements are followed. It also sets rules for how companies should be run and protects the rights of people involved like shareholders, employees, and creditors.

It helps keep businesses organized and accountable. The company law also ensures that there are no defaults that may disrupt the smooth functioning of a business enterprise, and to uphold transparency and accountability, we need company laws that provide an outline of how a company must do business and be managed. The law of the company regulates the rules and regulations of the business, and the liabilities of shareholders, operate in standardizing procedure.

Definition
A company is an artificial person created by the Statute of legal sanctity, having "separate identity" and "perpetual succession". The legal sanctity of a company is provided under the Company's Act 2013 and previous legislations animate a company with a personality almost similar to that of a physical person. As per provision 20 of the definition clause of the Act, a company simply means a company incorporated under the Act; or under any previous relevant law. These Companies incorporated under this enactment must operate under the boundaries defined by this Act.

The definition of company is given by Justice Lindley, "А соmраny is meant an аssосiаtiоn of many рersоns who соntribute money or money's worth to а соmmоn stосk and employ it in some trade or business, and who share the рrоfit and loss (as the саse mаy be) аrising there frоm The соmmоn stосk соntributed is denoted in money and is the сарitаl of the соmраny.

Case Law:
In the famous case of S.S. Dhanoa, the Supreme Court referred to the definition of Corporation as given by C. J. Marshall of the U.S.A. in the celebrated case of Dartmouth College. A corporation has been addressed as a legal creature existing only in law and its characteristic properties are the ones conferred impliedly or expressly upon it by law. The aforementioned definition very much constitutes a very easy way to understand the explanation of a corporation and the same can be extended to understand the legal identity of a Company.

A 'Company' is a body or an entity that has a separate legal existence from the members who comprise it. It is a legal fiction that has been created by the Companies Act, of 1956. This independent corporate personality that's conferred upon a company on its creation is very unique in its features. There are different people who contribute in various ways to the work of the company.

Who looks out for the company when the directors have not yet been appointed?

Promoters are the people who help create a new company by providing financial support and handling the necessary paperwork for registration. They play a main role in getting the company started before it officially exists.

The other intrinsic part is played by the directors, after a company is formed, directors and shareholders play an intrinsic role, the board of directors manages the company and makes key decisions, while shareholders provide the funds needed to keep the business running. Directors are appointed once the company is officially registered.

Characteristic:

• Legal Authentication of company
  A company can only be formed according to the laws of the land. In India, businesses are registered under the company's Law, while banks and insurance companies follow separate laws.
• Independent Legal Personality
  A company is a separate legal entity from its owner. This means it can own property, sign a contract, and open a bank account in its own name.
• Capped Liability
  Unlike partnerships, the financial risk for shareholders in a company is limited to their investment in shares. This makes forming a company a safer option for managing risks.
• Never-Ending Succession
  A company continues to exist even if its members change or if any member dies or becomes incapacitated. It can only be dissolved through legal procedures.
• Common Insignia
  Since a company cannot sign documents like a person, it must have its own official seal. Documents without this seal are not considered valid.
• Ease of Transfer of Shares
  Shares in a public limited company can be easily transferred without needing approval from other shareholders. This flexibility increases trust among investors.
• Court Ready
  As a legal entity, a company can enter a contract, sue, and be sued in its own name. This separate legal status simplifies legal processes when disputes arise.

Types Of Companies

• Private Limited Company
  A private limited company restricts the transfer of shares and limits the number of shareholders. It offers limited liability but is not allowed to raise capital from the public.
• Public Limited Company
  A public limited company can offer shares to the public and has no restrictions on the transfer of shares. It must adhere to stricter regulatory requirements.
• One-Person Company (OPC)
  An OPC allows a single individual to establish a company, combining the benefits of a sole proprietorship and a corporation.

Conclusion
Company law is vital for the functioning of modern businesses. It provides a structured environment for establishing and operating companies, protecting the interests of shareholders, and ensuring accountability. Understanding these principles is crucial for anyone looking to engage in business activities. Company law regulates the business entities, conducting business by standardizing procedures, protecting the interest of the shareholder, and other things.

Company law does more than just make sure agreements are followed. It also sets rules for how companies should be run and protects the rights of people involved like shareholders, employees, and creditors. It helps keep businesses organized and accountable.

References:

• https://blog.ipleaders.in/everything-need-know-company-law/. (n.d.). Retrieved from https://blog.ipleaders.in/everything-need-know-company-law/
• https://blog.ipleaders.in/overview-companies-companies-act-2013/. (n.d.). Retrieved from https://blog.ipleaders.in/overview-companies-companies-act-2013/
• leader. (n.d.). leader. Retrieved from Meaning, Features & Compliances of Company: https://blog.ipleaders.in/overview-companies-companies-act-2013/
• ipleaders. (n.d.). Everything You Need To Know About Company Law. Retrieved from leaders: https://blog.ipleaders.in/everything-need-know-company-law/
• ipleaders. (2020, January 7). Meaning, Features & Incorporation of a Company under Companies Act 2013. Retrieved from ipeaders: https://blog.ipleaders.in/company-compliances/
• S.S. Dhanoa vs Municipal Corporation, Delhi & Ors on 8 May 1981 (Supreme Court of India May 8, 1981). Retrieved from https://indiankanoon.org/doc/168102/