Management Notes

Reference Notes for Management

Law of Company and Insolvency – Major Topics Explained in Detail | Business Law

Law of Company and Insolvency

Law of Company and Insolvency

Meaning of Company

Generally, a company is a legal entity formed by a group of individuals or organizations for the purpose of conducting business activities. It is an artificial person created by law, separate and distinct from its owners, known as shareholders or members. Limited liability, a perpetual existence, transferability of shares, and ease of raising capital are some of the advantages of the company structure.

In a company, capital, resources, and human effort are brought together to produce goods or services in order to earn profits. The primary objective of a company is to maximize shareholder value by generating profits and providing returns on their investments. As a legal entity, it can enter into contracts, sue, and be sued in its own name.

Read more