Question

A company has separate legal status.

• A. True
• B. False

Answer 1

The correct option is A True

The principle of the separate legal personality of a company has become a vital part of company law. while the company legal relationships until that time had been principally based on transactions and activities between ‘natural’ or ‘real’ persons, namely human beings, from that time forward these legal relationships have been increasingly extended also to relations with the company, as ‘legal’ personality. Thus, the principle of separate legal personality of a company has conjured up many practical as well as theoretical considerations about its application and correlated consequences.

Hence the statement is true.