Question

explain how the company is artificial person?

Answer 1

Hey mate
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

Answer 2

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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