Question

What do you understand by separate legal existence of a company

Answer 1

Answer:

Any company is set up as an SLE to legally separate it from the individual or owner, such as a limited liability company or a corporation. If a business is a separate legal entity, it means it has some of the same rights in law as a person. It is, for example, able to enter contracts, sue and be sued, and own property

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Answer 2

Answer:

A separate legal identity is a fundamental principle in company law.

Explanation:      

• According to this principle, the company is treated as an entity separate from its members.
• The company is regarded as a person. It has its rights which are different from the rights of its owners.

• That person could be a company, limited liability partnership, or any other entity recognised by law. It has its separate legal existence.
• When a business has a separate legal entity, it means that it has some of the same legal rights as a person.
• For example, it can enter contracts, sue and be sued, and own property.