Company is the most popular form of business organization. An increase in the size and volume of business has made it more difficult for sole trader or a partnership firm to run their business effectively because of lack of resources and technical know-how. Further, these two forms of business suffer from unlimited liability as well as absence of continuity of existence. In order to remove these limitations, a new form of business is developed called a "joint Stock Company". A joint stock company is popularly known as "Company" or a "Corporation".
A company in common language means group of persons associated together for some common purpose voluntarily. It is an artificial being, invisible, intangible and existing only in contemplation of law. A company is a voluntary association of persons formed for the purpose of some business for profit with common capital, divisible into transferable shares, possessing a corporate legal entity and a common seal. Company collects capital by issuing shares to promoters and general public. Share of public limited company is easily transferable from one person to another. The company is managed by a group of members called "Board Of Directors" elected by the members or shareholders.
