A Company or a Corporation Is an ‘Artificial Person’ Created by Law

1739 Words Jun 3rd, 2012 7 Pages
“A company or a corporation is an ‘artificial person’ created by law.” Discuss.

Introduction
A company or a corporation is an artificial person not natural person. Artificial person are such as are created and devised by human laws for the purpose of society and government which are called corporation. Such artificial persons, known as corporation, possess similar rights and owe similar obligation as natural person, but have no physical or natural existence. The law in creating legal persons always does so by personifying some real thing. The legal entity[1] known as the company.

Corporate constitution

In the world in almost every jurisdiction a company must have a corporate constitution, which defines the existence of the company and
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If the objects were the things that the company was able to do, then the powers were the means by which it could do them. Usually expressions of powers were limited to methods of raising capital, although from earlier times distinctions between objects and powers have caused lawyers difficulty.[9]
Most jurisdictions have now modified the position by statute, and companies generally have capacity to do all the things that a natural person could do, and power to do it in any way that a natural person could do it.

Officers and agents

As artificial persons, companies can only act through human agents. The main agent who deals with the company's management and business is the board of directors, but in many jurisdictions other officers can be appointed too. The board of directors is normally elected by the members, and the other officers are normally appointed by the board. These agents enter into contracts on behalf of the company with third parties.

Companies will normally be liable for all the act and omissions of their officers and agents. This will include almost all torts, but the law relating to crimes committed by companies is complex, and varies significantly between countries.

Directors

The Directors of a Company are selected according to the articles of Association of the Company and provisions of the Companies Act. They are in charge of the management of the affairs of the Company.

The number of directors to be appointed to the Board of

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