Company As Seprate Legal Entity

How company is separate from its owner are describes in this presentation. :-)

1. Matti UR Rehman FA12-BBA-058 Companies as Separate Legal Entity

2. Introduction What Is Company? Company As Separate Legal Entity Outline

3. The three main forms of business are Sole trader Partnership Company A major disadvantage for sole traders and partners is that they have unlimited liability for the debts of their business. Introduction

4. According to the 1862 Act, Company is a separate legal entity as distinct from its members; therefore it is separate at law from its shareholders, directors, promoters etc. Companies lives and does its activities at its own existences . I t is treated in its own capacity. It does the business. It generates the revenue It can incur losses, It hires the employees and It pays its own taxes. What is Company?

5. T he effects of separate legal entity are: It has perpetual existence, despite changes of its members and constitution. It can own property of any kind, and thus buy and sell property in its own name. It can be a party to a contract. It can sue and be sued in its own name. Limited liability. Transferability and transmissibility of shares. Company As Separate Legal Entity