The Income Tax Act additionally acknowledges company as a separate authorized entity. A member cannot claim any ownership rights over the corporate both single-handedly or collectively. The properties of the corporate can solely be used for the event, betterment, maintenance, and welfare of the corporate and cannot be used for private benefits of the shareholders. A company is perceived to be a definite legal entity and one that does not rely upon its members. The money credited by the creditors of the company can be recovered only from the corporate and the properties owned by the corporate. It has to act by way of a board of shareholders elected or chosen by the members of the corporate.
Upon incorporation, an organization turns into a legal entity with perpetual succession and a standard seal. Since the corporate has no physical existence, it should act by way of its brokers and all … Read More