A company has a separate legal entity from _____________.

Its employees

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Its directors

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Its creditors

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Its members

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Solution

The correct option is D Its members
A company is a separate legal entity as distinct from its members, therefore it is separate at law from its shareholders , directors , promoters etc and as such isconferred with rights and is subject to certain duties and obligations.

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Q. The government company has a separate legal entity apart from the government.

A joint stock company is a group of people who come together to pursue a common economic objective, which leads to the formation of an entity that has a separate identity from its members.

Q. The company not being a separate entity, members are liable for its debt.

Q. State whether the following statements are True or False:
(a) A joint stock company is separate legal entity.
(b) A company survives even if all its members die.
(c) A joint stock company is a voluntary association of persons.
(d) A joint stock company is less stable than a partnership.
(e) Registration of a joint stock company is optional.
(f) There can be no conflict of interest in a joint stock company.
(g) A company is an artificial legal person.

Which of the following step involves the formation of a company as a separate legal entity?

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A company has a separate legal entity from _____________.

The correct option is D Its membersA company is a separate legal entity as distinct from its members, therefore it is separate at law from its shareholders , directors , promoters etc and as such isconferred with rights and is subject to certain duties and obligations.

The correct option is D Its members
A company is a separate legal entity as distinct from its members, therefore it is separate at law from its shareholders , directors , promoters etc and as such isconferred with rights and is subject to certain duties and obligations.