NOTES


CA-Foundation > Business Laws > The Companies Act, 2013 (Old & New)

A company is legal person but not a citizen. Comment.



Ans.

Is company a Citizen?

1. A company has nationality and domicile and residence.

2. But it is not a citizen and therefore cannot be said to have the fundamental rights expressly conferred upon citizens only. (State Trading Corporation of India Ltd. v. CTO 1963, 33 Comp. Cas.1057 (SC). However those fundamental rights which are available to all persons, whether citizens or not, like the right to equality, etc. are available to the company.

3. As per Citizenship Act, 1955, only natural persons can be citizens of India. So a company cannot be a citizen of India.


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Notes of The Companies Act, 2013 (Old & New)



  1. What is a company?
    see in detail

  2. Explain clearly the concept of “perpetual-succession" and “common-seal" in relation to a company incorporated under the Companies Act, 2013.
    see in detail

  3. What do you understand by “separate legal entity of the company?” State the circumstances where under the separate legal entity of the company can be ignored and liability can be imposed on the persons regulating the affairs of the company?
    see in detail

  4. A company is legal person but not a citizen. Comment.
    see in detail

  5. Define Private Company.
    see in detail


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