How company is separate from its owner are describes in this presentation. :-)

1. Matti UR Rehman
FA12-BBA-058

2.  Introduction
 What Is Company?
 Company As Separate Legal Entity

3.  The three main forms of business are
 Sole trader
 Partnership
 Company
 A major disadvantage for sole traders and partners is
that they have unlimited liability for the debts of their
business.

4.  According to the 1862 Act, Company is a separate legal
entity as distinct from its members; therefore it is
separate at law from its shareholders, directors,
promoters etc.
 Companies lives and does its activities at its own
existences .
 It is treated in its own capacity.
 It does the business.
 It generates the revenue
 It can incur losses,
 It hires the employees and
 It pays its own taxes.

5.  The effects of separate legal entity are:
 It has perpetual existence, despite changes of its
members and constitution.
 It can own property of any kind, and thus buy and sell
property in its own name.
 It can be a party to a contract.
 It can sue and be sued in its own name.
 Limited liability.
 Transferability and transmissibility of shares.