Practicing Success
How is a company's legal entity distinct from its members? |
Members have unlimited liability for company debts Members share personal assets with the company The company's existence is tied to its members The company is treated as a separate entity in law |
The company is treated as a separate entity in law |
The legal concept of a company as a separate legal entity means that a company is recognized as a distinct entity from its members (shareholders or owners) under the law. This distinction allows the company to have its own rights, responsibilities, obligations, and legal identity that is separate from those of its individual members. |