'Corporate decision making process has to be collective as per law'. Comment.

A company is an artificial judicial person created by law having its own distinct entity form and capable of entering into contracts. Though company is bestowed with the characteristic of separate legal entity but it cannot take decision on its own. It is capable of acting in its own name, entering into contracts. It is capable of owning and holding property in its own name, sue others and to be sued by others in its name. Despite all these powers, since it is not a natural person, it expresses its will or takes its decisions through natural persons (i.e. directors or members) collectively which is known as "resolutions" at validly held meetings. In case of Re Associated Colour Laboratories Ltd (1970) 12 D.L.R, a meeting has been defined as 'Coming together of two or more persons face to face, so as to be in each other presence or company. There are two collective bodies in the company which take decision through resolutions: Board of Directors – who manage, control and direct the business of the company General body of members – who ultimately own the company. Such decisions pertain to the various corporate activities and management of the company. Thus corporate decision making process has to be collective as laid down in the Law.