Section 4 of The Road Transport Corporations Act, 1950
Incorporation.
Every Corporation shall be a body corporate by the name notified under section 3 having perpetual succession and a common seal, and shall by the said name sue and be sued.
Summary
- This provision declares that every corporation is a body corporate.
- It gives corporations perpetual succession, meaning they continue to exist regardless of changes in their members.
- it grants the corporation a common seal, which acts as its official signature.
- It establishes that a corporation can sue others and be sued in its own name.
Practical examples
FAQ
1. What does it mean that a corporation has perpetual succession under the Road Transport Corporations Act, 1950?
Under Section 4 of the Road Transport Corporations Act, 1950, this means the corporation is a permanent legal entity that continues to exist even if its board members or directors change.
2. Can a corporation be sued under the Road Transport Corporations Act, 1950?
Yes, Section 4 of the Road Transport Corporations Act, 1950, states that a corporation shall sue and be sued in its own name.
3. What is a common seal as mentioned in Section 4 of the Road Transport Corporations Act, 1950?
Under Section 4 of the Road Transport Corporations Act, 1950, a common seal is the official stamp or signature used by the corporation to authorize legal documents.
Test yourself
1.Under Section 4 of the Road Transport Corporations Act, 1950, what is the legal status of every Corporation?
2.What feature ensures the permanent existence of a corporation under Section 4 of the Road Transport Corporations Act, 1950?
3.According to Section 4 of the Road Transport Corporations Act, 1950, what serves as the official signature for the corporation?
4.Under Section 4 of the Road Transport Corporations Act, 1950, in whose name are legal proceedings conducted?