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Which of the following is NOT a characteristic of a company under Indian Company Law?
Answer & Solution
Correct answer: B.
1. The Lesson 1 enumeration of characteristics lists corporate personality, limited liability, perpetual succession, separate property, transferability of shares, capacity to sue and be sued, and so on.
2. The Supreme Court in State Trading Corporation v. C.T.O. held that a company is NOT a citizen under the Citizenship Act or the Constitution.
3. While Article 14 ("person") protection is available, Article 19 ("citizen") rights are not directly available to a company.
4. Perpetual succession, separate property, and capacity to sue/be sued are textbook characteristics.
_Source: ICSI CS Executive Paper 2 (Company Law) — Lesson 1: Introduction to Company Law, pp. 2-35._
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