directors of a company

In India, the formation and management of a company is governed by the Companies Act, 1956. Two broad categories of companies are private companies and public companies. A private company can be a government as well as non-government corporation. Next, this discussion will examine exactly how a private company is different from a public one.

A company is a separate legal entity, considered as an artificial person by law. A company can be run by a human agency i.e. company directors, as it has no physical existence of its own to manage itself without an efficient human interface. Only a person can be appointed as a director, not any organization or corporation.