Companies Act, 2013 Meaning and Nature of a Company with Emphasis on its Advantages 1. Meaning of a Company : A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. It is governed by the provisions of the Companies Act, 2013 in India. According to Section 2(20) of the Companies Act, 2013, "Company means a company incorporated under this Act or under any previous company law." Lord Justice Lindley : "A company is an association of many persons who contribute money or money's worth to a common stock and employ it for a common purpose. The common stock so contributed is denoted in money and is the capital of the company." A company is an artificial person created by law. It has a separate legal identity distinct from its members. It can enter into contracts, own property, sue, and be sued in its own name. 2. Nature of a Company : The nature of a company can be understood through its key ...