Define a Company and explain its characteristics

Its key characteristics include:

• Separate Legal Entity: A company has its own legal identity, separate from its owners (shareholders). It can own property, enter into contracts, and sue or be sued in its own name.
• Perpetual Succession: The existence of a company is not affected by the death, insolvency, or retirement of its members. It continues to exist until legally dissolved.
• Limited Liability: The liability of the shareholders is limited to the amount of capital they have invested or agreed to invest in the company. Their personal assets are generally protected from the company's debts.
• Transferability of Shares: Ownership in a company is represented by shares, which can typically be bought and sold, allowing for easy transfer of ownership.
• Common Seal: Historically, a company used a common seal as its official signature for documents, though this practice is less common now with electronic signatures.
• Separation of Ownership and Management: In larger companies, ownership (shareholders) is often separate from management (directors), with shareholders electing a board of directors to oversee operations.