There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: A company is created through the process of incorporation under the Companies Act, 2013.
Reasoning: A company is an artificial person which is a separate legal entity from its members (Shareholders).
Answer & explanation
Correct answer: option 2
The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. This means that a company is treated as a separate person from its participants.
Both the statements are true but not relatable to each other.