It has the rights to acquire and dispose the properties, to enter into contract with third parties in its own name, and can sue and can be sued in its own name. It must be formally wound up to end its existence. The Companies Act was created in the year 1956 and it ensured that a company is treated as a separate legal entity from its members and that due to lapse or removal of one or all its members, it do not end. It is not a human being but it acts through human beings. MA Company is an artificial person created by law. Separate Legal Entity : On incorporation under law, a company becomes a separate legal entity as. (b) insurance companies, except in so far as the said provisions are inconsistent.Ĭorporate law is the body of law governing the rights, relations, and conduct of persons, companies, organizations and businesses. (a) companies incorporated under this Act or under any previous company law.
