Characteristics of Private Limited Company:
Separate Legal Entity
Under Incorporation law, a company becomes a separate legal entity as compared to its members. The company is distinct and different from its members in law.
The liability of the members of the company is limited to contribution to the assets of the company upto the face value of shares held by him
Membership of a company may keep on changing from time to time but that does not affect life of the company
A company is a distinct legal entity. The company’s property is its own
Transferability of Shares
Shares in a company are freely transferable, subject to certain conditions, such that no share-holder is permanently or necessarily wedded to a company
A company is an artificial person and does not have a physical presence. The common seal is the official signature of the company. The name of the company must be engraved on the common seal
Capacity to sue and being sued
A company can sue or be sued in its own name as distinct from its members
A company is administered and managed by its managerial personnel i.e. the Board of Directors.
One Share-One Vote
The principle of voting in a company is one share-one vote i.e. if a person has 10 shares, he has 10 votes in the company.