a) Describe the characteristics of a company.

B) Explain the statement that "Promoter is not a trustee or an agent of the company but he stands in a fiduciary position towards it."

A) Characteristics of a Company:

A company is a legal entity distinct from its members, and its characteristics define its functioning, ownership, and responsibilities. Some of the key characteristics are:

1. Separate Legal Entity: A company is an independent legal person, separate from its shareholders, directors, or promoters. It can own property, enter into contracts, sue or be sued in its own name.

2. Limited Liability: The liability of the shareholders is limited to the extent of the unpaid amount on their shares. This means that shareholders are not personally liable for the company’s debts beyond their capital contribution.

3. Perpetual Succession: A company’s existence is not affected by changes in ownership or the death of its shareholders or directors. It continues to exist even if members or directors change.

4. Transferability of Shares: The ownership in a company is divided into shares, and these shares can be freely transferred (in public companies) unless restricted by the company’s articles of association.

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