Llc

Llc Corporation: Llc Corporation For Better Growth

A company is an association of members voluntarily formed for the purpose of undertaking business and earning profits. It is an artificial but legal entity created by law. The company is classified in to two parts public limited company and private limited company. The public limited company is better known as Llc Corporation.

The Llc Corporation is an incorporated association. It is an association of members who have invested their valuable capital. The Llc Corporation divides its capital into transferable shares. Only the ownership of these shares will lead to their membership. Any person interested to become a member of Llc Corporation can become a member just by mere purchase of the shares. The shares of the corporation are easily transferable by sale. There are certain nominal restrictions on transfer of the shares. The owners of the shares are called share holder. They are the owners of the corporation. The corporation is called limited liability because the liability of the shareholders is limited to the extent of the unpaid amount of shares.

The Llc Corporation is different from other forms of business organizations. The workings of the corporation are done by directors of the company. The directors of the company are the elected representatives of the shareholders. They run the business of the company. Hence we conclude that the ownership and management of the Llc Corporation is different. This helps in specialization of management. However the directors have to purchase a nominal amount of shares known as qualification shares. This enables them to work in the interest of the company. They have to work in the good faith of the company. They are the pillars of the company.

The Llc Corporation has no physical existence but has its own legal existence in the eyes of law. It can acquire property, enter into various contracts, sign documents etc. It has an identity of an artificial person. It has to be registered with the respected official authority as registration of incorporation is just like a birth to the company. It also has a perpetual succession that is the company has a long and a stable life. Its existence is not affected by the death insanity of any members. Any amount of change in the membership does not affect the existence of the company except in the case of winding up.

The company has to sign documents and other papers. It uses its common seal which serves as the signature of the company. The common seal has to be affixed by the counter signature of two directors of the company. The company has some important documents namely memorandum of association and articles of association. The memorandum of association is the fundamental document of the company. It is described as the constitution or character of the company. The articles are the secondary important document of the company. As it contains the rules and regulations of the company it has to be filed with the registrar.