The correct answer is option 'C', which states that the term company is defined under Section 2(20) of the Act.

Explanation:

The term company is defined under Section 2(20) of the Companies Act. The Companies Act is a legislation that governs the incorporation, operation, and regulation of companies in India. It provides various provisions and regulations that companies need to comply with in order to ensure transparency, accountability, and protection of stakeholders' interests.

The Companies Act defines a company as "a company formed and registered under this Act or an existing company." This definition encompasses both newly incorporated companies as well as existing companies that were registered under previous company laws.

The definition provided in Section 2(20) is a broad and inclusive definition that covers various types of companies, such as private companies, public companies, limited liability partnerships (LLPs), and more. The Act provides separate provisions and regulations for different types of companies based on their size, ownership structure, and nature of activities.

Under Section 2(20), a company is considered a separate legal entity from its members. This means that a company is distinct from its shareholders, directors, and officers. It has its own rights, liabilities, and obligations, and can enter into contracts, own property, and sue or be sued in its own name.

The definition of a company under Section 2(20) is crucial as it sets the foundation for various provisions and regulations applicable to companies. It helps in determining the rights and responsibilities of the company, its shareholders, and other stakeholders. It also provides clarity on the legal status and capacity of a company.

In conclusion, the term company is defined under Section 2(20) of the Companies Act. This definition is broad and covers various types of companies, providing the basis for the legal framework governing their incorporation, operation, and regulation.