CHAPTER- 1

INTRODUCTION

Personality is a very vague and wide term and it has a variety of meanings. It is
derived from the Greek” which means the actor’s mask through which his voice must be
sounded. In philosophical sense personality means ‘the rational substratum of a human
being’. In law it means a ‘right and duty bearing unit’.

Generally there are two types of persons which law recognizes namely the Natural
Person and

A juristic person is

and its organization was not very complex, therefore the problem of legal personality
did not bother them much. The family was the unit of the society. Though family consisted of
a number of individuals all in ‘pater familias’. He represented the whole family; therefore
there was no theoretical difficulty about his position.

A juristic person is an artificial of property, group of human beings or an institution

upon whom the law has conferred a legal status and who are in the eye of law capable of
having rights and duties as natural persons.

CHAPTER- 2

HISTORY

In the common law tradition, only a person could sue or be sued. This was not a
problem in the era before the Industrial Revolution, when the typical business venture was
either a Sole Proprietorship or Partnership. There, the owners tion, however, is that the
owners/shareholders enjoyed limited liability. The owners were not liable for the debts of the
company. Thus, when a corporation for corporate wrong doing. To resolve the issue, legal
scholars proposed a solution. A corporation could instead be considered a person, and could
therefore be recognized and held subject to the law. This understanding was not only adopted
by the courts but also by the legislatures. Thus, legislatures intentionally used the word
‘person’ to include both natural persons.

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 Corporate Personality is the creation of law. Legal personality of corporation is
recognized both in juristic personality of corporations pre-supposes the existence of three
conditions:

1. There must
2. which the corporation functions, and
3. The Corporation is attributed will by legal fiction.

A corporation is distinct from its individual members. It has the legal personality of
its own and it can, has a perpetual existence. However, unlike natural persons, a corporation
can act only through its agents. Law provides procedure for winding up of a corporate body.
Besides, corporations the banks, railways, universities, colleges, church, temple, hospitals etc.
are also conferred legal personality. Union of India and States are also recognized as legal or
juristic persons.

CHAPTER- 3

TYPES OF COONS

1. Corporate Aggregate:

This kind of corporation is an association of human beings united for the purpose of
forwarding their certain interest furtherance of a common object. Their liability is limited to
the extent of their share-holding in the company. A is thus formed by the personification of
the shareholders. The the shareholders but its own property and shareholders have a right to
receive dividends from the profits of the company but not the property of the company. The
principle of a company was Saloman v. Saloman & Co.1

2. CoSole:

This kind of some office or function, deals in legal capacity and has legal rights and
duties. A corporation. Post Master, Public Trustee, Auditor General of India, the Crown in
examples of a corporation sole. Generally, corporation sole is its “continuous entity endowed
with a capacity for endless duration”. A corporation illustration of double capacity. The

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1897 A.C. 22

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object of a corporation of a corporation aggregate. In it a single person holding a public office
holds the office in a series of thereby that succeeds him. Thus on the death of a corporation
sole, his natural personality is destroyed personality continues to be represented by the
successive person.
CHAPTER- 4

nature of corporate personality has always become one of the major focuses. Even
though there are many to explain the personality, none of them is said to be dominant. It is
truth, none can by itself sufficiently to assume a legal this theory accepted as a well-
established principle it is a metaphorical usage of language, clothing the formal group with a
single
theories on corporate personacontented that the legal entity of the corporation is
artificial. The separate legal personality of corporation is based upon theories which are
concentrated upon the this is not true. There is.
Therefore, the courts have ollowed. The reason of gap practicehave kept themselves
more occupied with either a philosophical sufficiently interpret the phenomenon of juristic
person. The following are the principal theories of corporate personality:
1. Fiction ry
2. Realist Theory
3. heory
4. Bracket r Symbolist Theory
5. Purpose Theory
The Fiction Theory
This theory is firstly prulgated by Pope Innocent IV ). According to this theory the legal
human beings is the result of a fiction. Hence not being a human being corporation cannot be
a real person and cannot have any personality of its own.
Under this it by fiction. The juristic personality of the corporation is a fiction and the
author is the state. The personality the corporation enjoys is not inherent in it but as conceded
by to the onnection made in this theory as regards to the theory of sovereignty of state which
is also known as the concession theory.
This theory is jurists, particularly, Von Savigny, Coke, Blackstone and Salmond. Sir
John Salmond is of
theory is Coke, who English fiction theory advocate made it clear a human being to
wch the law attributes

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 The fiction theory to justify that the
The Realist Theory

CHAPTER- 7

CONCLUSION

From the to non-living entities such as companies, institutions and group which helps
in determining their rights and duties. Clothed with legal personality these non-living entities
can own, use, dispose of property and can sue and be names. Unincorporated institutions are
denied this advantage because their existence is not different from the members.

Thus the such corporate statutes typically give corporations the ability to own
property, sign binding contracts, pay taxes in a capacity that is separate from that of its
shareholders.

Finally expressing these

BIBLIOGRAPHY

Books

1. Publishers, New Delhi (1986).

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