# Characteristics of a Company
A company is more than a group of people - it is a distinct legal entity with unique attributes. These nine characteristics are foundational.
## The Nine Characteristics
| # | Characteristic | What It Means |
|---|---|---|
| 1 | Separate legal entity | Company is distinct from its members in the eyes of law |
| 2 | Limited liability | Members' liability is limited (to unpaid share value / guarantee) |
| 3 | Perpetual succession | Death/insolvency of members does not affect company's existence |
| 4 | Separate property | Company owns property in its own name, not the members |
| 5 | Transferability of shares | Shares can be freely transferred (with restrictions in private cos.) |
| 6 | Common seal | Historically the company's signature (now optional) |
| 7 | Capacity to sue and be sued | Company can sue / be sued in its own name |
| 8 | Separate management | Owned by shareholders, managed by directors |
| 9 | Voluntary association for profit | Members join voluntarily, usually for profit (Section 8 companies are an exception) |
## Why These Matter
These characteristics flow from the famous principle in Salomon v. Salomon & Co. Ltd. - that a company is a separate person in law.
## Memory Aid
"SLP-S-TC-CSV" → Separate entity, Limited liability, Perpetual succession, Separate property, Transferability, Common seal, Capacity to sue, Separate management, Voluntary association.