Section 42: Legal person to acquire competency

1) A body corporate incorporated pursuant to law shall obtain legal personality and obtain legal competency in the same capacity.

2) In order to obtain legal competency pursuant to sub-section (1), anybody shall be registered in accordance with the law.

3) Except where a separate provision has been made by law for registration pursuant to sub-section (2), an application shall be made to the competent authority, setting out the following matters:

(a) Name of the body corporate,

(b) Head office of the body corporate, and address of such office,

(c) Objectives and functions of the body corporate,

(d) Details of the capital structure, if any, of the body corporate,

(e) Other necessary details.

4) After the registration of a body corporate pursuant to sub-section (2), such a body shall be deemed to have been incorporated.

5) A legal person shall have a corporate personality and use a separate seal for its activities.

6) A body incorporated pursuant to this Section shall be an autonomous body corporate with perpetual succession, and may, in the same capacity, subject to law, carry out as a person the following functions:

(a) To acquire, hold, earn, possess, dispose of, sell or otherwise manage a property,

(b) To execute a contract, exercise rights and discharge obligations under the contract or to assume any kind of right or obligation in any other way,

(c) To frame statutes or byelaws required to operate its own functions, proceedings or business,

(d) To appoint necessary employees based on law to carry out its functions,

Provided that the commissions, institutions or bodies referred to in clause (g) of Section 44 shall not be allowed to appoint employees.

(e) To open branches or other offices, subject to its statute and byelaws,

(f) To open an account in a bank or financial institution and to operate the account,

(g) To carry out other functions according to law.

7) A legal person may sue or initiate other legal action and may also be sued or subjected to other legal action by its name.