"A Company is an artificial judicial person created by Law". Comment.

A company is an artificial judicial person created by law having its own distinct entity form, has perpetual succession and capable of entering into contracts. Perpetual succession implies that upon death or disqualification of its owners or shareholders, the company continues to exist. 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." In Solomon vs. Solomon and Company Limited for the first time, the principle of the separate legal entity or separate legal existence of a company was recognized by the House of Lords. It was held that once the company is incorporated, it becomes a separate entity in the eyes of law independent of a company from Mr. Solomon.