important topics

[Mukund]

Hi can any budy explain me 'What is meant by seperate leagal existance (of entity)'...... I found the leagal diffrences of diffrent entities very useful (Ref. Get Through Guides-Keynotes A1.2 in tabular format)

[Acid]

Hi there,

Seperate legal entity is a feature of Corporations .

Seperate legal entity means that the company or business is a seperate legal person apart from its owners or shareholders.

A company which is a legal person can be sued in courts and can be made liable for debts . The shareholders will not be sued or be held accountable for the debts of the company.

Seperate legal identity is a vital feature of Incorporated companies which is not found in Ordinary (Traditional) Partnership structures.

I hope this helps

Best of luck!

Acid