CUET Preparation Today
CUET
Accountancy
Accounting for Shares
Who can not sue the company's members for their debts? |
Debtors Creditors Agents Promoters |
Creditors |
A company has a separate legal entity which is distinct and separate from its members. It can hold and deal with any type of property. It can enter into contracts and even open a bank account in its own name. Due to this feature of a company, a creditor can sue only the company for his debts not any of its members. |