A corporation is an artificial person enjoying in law capacity to have rights and duties and holding property. Corporate Personality was created by law. A corporation is distinguished by the reference to different kinds of things which the law selects. The individuals forming the corporation are known as its members.
It has a perpetual existence, so does not come to end with the death of its individual members. Unlike natural persons, a corporation can act only through its agents. A corporate body winds up by several procedures provided by law.
Some fund or estate which is reserved in certain special are the corpus of the legal person are included within the term legal personality.
Corporations are of two kinds:
1. Corporation Aggregate: it is an association of human beings who are united for the purpose of forwarding certain interest. A limited Company is the best examples. In such a company a number of people as shareholders contribute or promise to contribute to the capital of the company for the promotion of a common commodity. They have limited liability according to their. A limited company is thus formed by the role of the shareholders. The shareholders have the right of receiving dividends from the profits of the company but not the property of the company.
2. Corporation Sole: it is an incorporated series of successive persons. It consists of a single person who is regarded a legal person by law. It is like, a single person, who exercise some office or function or deals in legal capacity and has legal rights and duties. A corporation sole is interminable. Generally, holders of a public office which is recognized by law as a corporation are commonly called corporation sole. The chief characteristic of a corporation sole is the continuous entity graced with a capacity for endless duration. Double capacity illustrates a corporation sole. The object of a corporation sole is similar to that of a corporation aggregate.
Incorporation sole a single person holds a public office in a series of succession, which means that with his death, his property, right and liabilities do not extinguish but they are vested to the person who succeeds him. Thus after the demise of a corporation sole, his physical personality is destroyed, but his legal personality continues to be represented by the person who succeeds him. Thus, the death of a corporation sole does not resentfully affect the interests of the public in general. Some examples of a corporation sole are Post – Master- General, Public Trustee, Comptroller and auditor general of India, the Crown in England etc are.
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