The Income Tax Act also acknowledges company as a separate authorized entity. A member can’t declare any ownership rights over the corporate either single-handedly or collectively. The properties of the corporate can solely be used for the development, betterment, maintenance, and welfare of the corporate and can’t be used for personal advantages of the shareholders. A firm is perceived to be a distinct legal entity and one that doesn’t rely upon its members. The cash credited by the collectors of the corporate could be recovered solely from the corporate and the properties owned by the company. It has to behave by way of a board of shareholders elected or chosen by the members of the company.
Every member of those firms promises to pay a fixed sum of money within the event of liquidation of the company. The legal responsibility of the members is limited by the worth of the … Read More