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Question
‘A company is formed according to the provisions of Company Law’ indicates which of the following characteristics of a company?
Options
Common Seal
Perpetual Succession
Body Corporate
Limited Liability
MCQ
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Solution
Body Corporate
Explanation:
This characteristic refers to the fact that a company is an artificial person created by law. Since it is formed and registered according to the specific provisions of the Companies Act, it gains a legal identity that is separate from its members. While features like Limited Liability or Perpetual Succession are benefits of being a company, the term “Body Corporate” specifically highlights its legal origin and existence through the framework of the law.
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