Q1.

On the basis of legality, explain a difference between a natural person and an artificial
person. What would be the legality of Roberts as a legal entity?
Answer.
A legal person is any human or non-human entity or any human being, firm, or government
agency that is having a legal rights and obligations, such as having the ability to enter into
contracts, to sue, and to be sued. So there are of two kinds of legal entities:
1. Natural persons also known as physical persons and
2. Juridical persons also known as artificial persons (such as corporations)
Differences:
Natural Person Artificial Person
Acquire legal personhood (status of being a Acquire legal personhood when they
person) when they are born are incorporated in accordance with law

Has a capacity for rights and duties. Here, Legal rights and duties may attach to it. Example
capacity means ability but not the obligations for body corporate
rights and duties

Has a date of birth certificate as a proof of birth Have a certificate of incorporation which is like
a DOB certificate
Owner of the companies or founder of the company It separates the actions of the company from
those of its members
Certain rights and privileges are granted by law to Enjoys rights, protections, privileges,
the citizens of the country responsibilities, and liabilities in law separately
from its members

The directors and members of the company will not If a company is found liable for a particular
be liable personally action, the company as an artificial person will
be solely liable

Exempted from limitations Bound with certain limitations like it cannot

marry, vote, hold public office, etc.

Legality of Roberts:
A robot is an autonomous machine able to perform human actions. Three complementary
attributes emerge from such a definition of robot: They concern:
1) Physical nature: is based on the assumption that a robot must possess a physical body.
Robots are usually referred to as machines
2) Autonomy: capability of carrying out an action on its own without human intervention.
International Standard Organisation (ISO 13482)
3) Human likeness: the similarity to human beings. The idea that a robot should be humanoid
in its appearance
In 1950, Isaac Asimov in his book Robot suggests that in the future robots could be governed
by the Three Law of Robotics:
1. A robot may not injure a human being or, through inaction, allow a human being to come to
harm.
2. A robot must obey orders given it by human beings except where such orders would conflict
with the First Law.
3. A robot must protect its own existence as long as such protection does not conflict with the
First or Second Law.

Q2. Write down the various steps to incorporate a private company and a public limited
company.
Answer.
A company to be incorporated as a Private Company must have a minimum paid-up capital of
Rs. 1, 00,000, and minimum number of members required to form a private company is 2 or
more members. For Public Company it must have a minimum paid-up capital of Rs. 5, 00,000
and requires at least 7 or more members.
Steps to be followed for incorporation of New Company
1. Minimum Requirement of a Private Company:
2. Minimum 2 Shareholders
3. Minimum 2 Directors (The directors and shareholders can be same person)
4. Minimum Authorised Share Capital shall be Rs. 100,000 (INR One Lac)
5. DSC (Digital Signature Certificate) for all the Directors (for applying of DIN)
6. DIN (Director Identification Number) for all the Directors
7. Minimum Requirement of a Public Company:
8. Minimum 7 Shareholders
9. Minimum 3 Directors (The directors and shareholders can be same person)
10. Minimum Authorised Share Capital shall be Rs. 500,000 (INR Five Lac)
11. DIN (Director Identification Number) for all the Directors
12. DSC (Digital Signature Certificate) for one of the Directors
Steps to company incorporation:
Procedure Detail
1 Obtain Digital Signature Certificate (DSC) Obtain a Digital Signature Certificate from
authorized DSC issuing authority.

2 Obtain Director Identification No. (DIN) Make Application in Form DIR-3

3 Register DSC in the name of Director on MCA

portal

4 Apply for Reservation of Name Application in Form No. INC.1. The same shall
be reserved for a period of 60 days

5 Drafting and Printing of Memorandum and

Articles of Association
 6 Filing of INC -7, DIR 12 & INC 22Adoption of
Memorandum of Association. Adoption of
Articles of Association

7 Commencement of business Mandatory to file Declaration with ROC in Form

No. INC.21

8 Registered Office A company shall have a registered office within

15 days of Incorporation and it shall file Form 22
to verify the same

Q3. What do you understand by Limited Liability Partnership? How better this concept
is beneficial for the business.
Answer.
Limited Liability Partnership is defined as A corporate business vehicle that enables
professional expertise and entrepreneurial initiative to combine and operate in flexible,
innovative and efficient manner, as a hybrid of companies & partnerships providing benefits
of limited liability while allowing its members the flexibility for organizing their internal
structure as a partnership

Limited Liability Partnership has separate legal entity i.e. the LLP and partner are distinct from
each other. Minimum of 2 partners are required to form the LLP, but there is no upper limit.
There is no requirement of minimum capital contribution.

Benefits of Limited Liability Partnership:

1. The liability of each partner is limited to his share as written in agreement filed at the
time of creation of LLP
2. Partners cannot be sued for the dues against LLP.
3. Partners are not liable for the action of other partners compared to partnerships in which
partners are liable for each others action.
4. Government imposes less restrictions and compliance requirements on LLP compared
to company.
5. It has low cost of formation and is easy to maintain. It is more flexible to organize the
internal structure of LLP compared to that of a company.
6. LLP is exempt from Dividend Distribution Tax (DDT). Company has to pay DDT on
dividend distribution

Q4. What are the feature of the company?

Answer.
Following are the features of the company:
1. Association of Person:
At least two persons or seven persons must come together to form a private or a public company
respectively. A single individual cannot constitute a company. This is the reason why a
company is called on Association of Persons.
 2. Incorporated Association:
A company comes into existence only after a certificate of incorporation has been obtained
from the Registrar of Joint Stock Companies. Without incorporation, it has no legal existence.

3. Artificial Legal Person:

A company is an artificial person created by law to achieve the objectives for which it is
formed. A company exists only in the contemplation of law. It is artificial person in the sense
that it is created by a process other than natural birth and does not possess the physical attributes
of a natural person.

4. Distinct Legal Entity:

A company is a legal person having a juristic personality entirely distinct and independent of
the individual persons who are its members. It enjoys in many respects the right of a natural
person in the eyes of law.

5. Perpetual Succession:
A company has perpetual existence i.e. its existence is not affected by the death or lunacy or
insolvency or retirement of its member.

6. Limited Liability:
Liability of members of a limited company is limited to the face value of the shares subscribed
by each of them. Members cannot be asked to pay anything more than what is due or unpaid
on the shares of the company held by them.

7. Transferability of Shares:
Members of a public limited company are free to transfer the shares held by them to any one
members for either to purchase or sell the shares.

8. Diffused Ownership:
Ownership of a company is in the hands of a large number of people. In case of Private Ltd.
Company, the upper limit is up to 50. In case of a public Ltd. Company there is upper limit to
the number of members.

9. Separation of ownership and management:

Share-holders are the owners of the company. Companys share-holders are widely scattered.
It is physically impossible for all of them to take patty in the management of the company.

10. Common Seal:

A company being an artificial person cannot sign documents for itself whereas a natural person
can do. The law has provided for the use of a common seal, with the name of the company
engraved on it, as substitute for its signature.