Chief Justice Marshal of U.S.A. has defined a company as “a person, artificial, invisible, intangible and existing only in the eyes of the law. Being a mere creature of law, it possesses only those properties which the charter of its creation confers upon it, either expressly or as incidental to its very existence.”
The essential underpinning of company is an incorporated association created by the law. In India, the Companies Act of 1956 (known as the Indian Companies Act, 1956) is the law under which companies are formed.
Section 3(1) (i) of the Companies Act defines a company as “a company formed and registered under this Act or an existing company.” “An existing company” means a company formed and registered under any of the former companies Act.
Company means ‘a company formed and registered under the Indian Companies Act 1956 or “an existing company”. “An existing company” means a company formed and registered under any of the former Companies Act’.
A company, thus, exists only in the contemplation of law. It has no physical existence. Right to act as an entity is granted to it by law. Law creates it and law alone can dissolve it.