what do you mean by seperate legal existence of a company?{in 200 words}
Answers
Answer:
A legal entity, typically a business, that is defined as detached from another business or individual with respect to accountability. A separate legal entity may be set up in the case of a corporation or a limited liability company, to separate the actions of the entity from those of the individual or other company.
Answer:
The term “separate legal entity” is a fundamental concept in law that underlies business law and legal liability.
Not getting it right means that you could:
1. trade in a way which makes you personally liable for the activities of a company, rather than the company itself
2.sign contracts which make you personally liable on the contract, when you don’t intend to
3.sign a contract with a non-existent legal entity, and make the contract unenforceable
4.sign a contract with the wrong company within a group of companies
lead to unwanted legal proceedings.
What does "separate legal entity" mean?
A separate legal entity is a person recognised by law - a "legal person". The entity has its own legal rights and obligations, separate to those running and/or owning the entity.
That person could be a company, limited liability partnership, or any other entity recognised by law as having its own separate legal existence.
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