COMPANION

The hut or covering over a ladder (or staircase) in a ship. COMPANY (Fr. compagnie), in Its most general sense, means any two or more individuals a ociated for any common object, whether of busine or pleasure. In its more limited sense, however, and that in which it is usually understood in this country, the term company means an a ociation of individuals for the prosecution of some industrious undertaking. Such a ociations may be of very various descriptions, inasmuch as the terms of the a ociation or partnership may be varied in an infinity of ways. Generally, however, they may be said to be either private or public companies; that is, according to the law of England, companies with not more than six partners and with more than six; and public companies may farther be divided into joint stock and regulated companies, and these again into incorporated and unincorporated companies. I. The principle on which a ociations for industrious purposes are established is too obvious to require much illustration. All great results are brought about by cooperation, and could not be effected otherwise. Isolated man is coipparatively feeble and helple ; the capacity of a ociating for a common purpose is, in fact, the main source of his power, and the principal distinction between him and the lower animals — Quo alio fortes sum us qua?n quod mutuis juvamur qfficiisf One man has capital without skill, and another skill without capital: if such persons act independently, they will be able to effect little or nothing; but if they combine their efforts, and the capital of the one be applied and directed by the skill of the other, the effect of their exertions will be incomparably greater. But this is not all. Many of the greatest and most important works undertaken in modern times could not have been attempted by one individual, how opulent or skilful soever. Some of them require a vast outlay; while the returns being frequently remote and contingent, no single individual, and, indeed, no small number of individuals, would be willing to put their fortunes to hazard by engaging in them. But such undertakings are readily and advantageously carried on by large a ociations; lor, in that case, individuals being called upon only to subscribe comparatively small sums to the common stock, they can afford to lose them without, in most instances, suffering any material inconvenience; while the aggregate amount of the subscriptions may, notwithstanding, amount to a very large sum, and be adequate to the greatest undertakings. In fact, some of the most -"gigantic works ever entered upon either in this or any other country have been accomplished by the joint contributions of the subscribers of 100/. shares. It is true that wealthy individuals usually subscribe for a number of such shares; but this does not affect the principle of the system, which is to distribute the risk according to the ability of the individuals a ociated. II. \n private companies the busine is usually conducted by one or more of the partners on the principles laid down in the deed of partnership. The rights and obligations of the partners as respects each other are, of course, mainly determined by this deed: as respects the public, the law regards the act of one partner as the act of the company; and each partner is bound, without any regard to the sum he has subscribed to the company's stock, to the whole extent of his fortune, for the debts and engagements of the firm. Certain formalities are nece ary at the withdrawal of a partner; such as advertizing in the Gazette, and the sending of special information of the fact to all individuals in the habit of dealing with the company. See Partnership. III. Public companies may, as alreiuly stated, be either joint stock or regulated; and these again may be either incorporated or unincorporated. 1. By a joint stock company is meant a company the stock of which is subscribed by a certain number of persons in shares of a certain amount. Thus, supposing that a joint stock a ociation is to be formed for carrying on the busine of banking or insurance, for excavating [s. 275]