explain how the company is artificial person?
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The statement can be understood with the help of the following points:
Artificial person: Unlike human beings, a company cannot sign its documents, cannot negotiate with its customers and cannot even breathe and talk.
Separate legal identity: The company has a legal identity different from its members, thereby, it can carry out business in its own name.
Perpetual succession: It is not affected by any such event as death, retirement, insolvency of its members.
Common seal: The board of directors use a common seal on all the official documents of the company to validate them
Here's your answer
The statement can be understood with the help of the following points:
Artificial person: Unlike human beings, a company cannot sign its documents, cannot negotiate with its customers and cannot even breathe and talk.
Separate legal identity: The company has a legal identity different from its members, thereby, it can carry out business in its own name.
Perpetual succession: It is not affected by any such event as death, retirement, insolvency of its members.
Common seal: The board of directors use a common seal on all the official documents of the company to validate them
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A company's formation creates an artificial entity that the law recognizes as a separate legal person with rights and obligations.
In other words, a firm is viewed differently from its participants.
At least one shareholder owns it, and at least one director oversees its management.
The result of a firm having everlasting succession is that it has a separate legal personality.
A shareholder's demise, disability, insolvency, or disagreement has no impact on the company's existence. When it is wound up in accordance with the Companies Acts, its existence ends.
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