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Introduction to NPO

"A company re...

Question

"A company remains free from the hazards of all personal misfortunes of its members" is derived from the benefit of incorporation of company being __________.

A

Limited liability

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B

Perpetual succession

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C

Infinite membership

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D

Independent legal entity

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Solution

The correct option is D Independent legal entity
A Company is a Separate Legal Entity
The existence of a company is distinct and separate from that of its members. A Company can own, enjoy, and dispose of a property in its own name. While the shareholders contribute to the capital and assets, the company is the rightful owner of such assets and capital.

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