The meaning of body corporate means a corporate entity that has a legal existence. The term body corporate is defined in section 2(11) of the companies act 2013. This includes private companies, public companies, and even personal companies. It also includes small companies, foreign companies, and limited liability companies. Body corporate or corporation also includes the company which is incorporated in India. Although there are several things that body corporate does not include-
A cooperative society is registered under any law relating to the cooperative societies.
Other body corporates which central government may by notification specify on behalf.
Although, the meaning mentioned earlier of body-corporate is different from the provisions that existed in other companies, which excluded a corporation sole and different from the definition of the body corporate, which was, however, not defined by the act of 1956.
The term corporation is generally used to describe the other Indian companies act of 2013, which is defined as a body corporate. The act further describes that the body corporate entities can be incorporated inside the company or outside the jurisdiction of the following. Here, the body corporate excludes the following features-
• Cooperative societies
• Sole companies
• Companies that notify the central government official gazette of formation.
But it is most definitely not limited to the private companies, small companies, etc.
So, corporations are business organizations that maintain a separate legal identity from that of the any of their owners. A corporation can be sued fir its own name; if that happens, the members of the company will be exposed to the limited liability.
It is said that too many cooks can ruin the broth. But if you own an apartment, unit of the block, or townhouse, there are multiple options that are the part of the deal. That is the reason body corporates exist.
A body corporate is the owner corporation as it is generally known to bring together all the individual owners within the single strata titled property. It is like a block of flats. Strata is the way of handling the legal ownership of the part of the building.
The owner corporation manages shared expenses and decides how the common areas like lobbies or the gardens are maintained, and deals with the issues between the owners like noise and parking.
