In joint stock company ,why it is called legal entity?

In joint stock company ,why it is called legal entity? please explain in simple sentence

asked Jul 8, 2016 in Partnership-Fundamentals by pooja j (233 points) 156 views

1 Answer

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A company comes into existence after it is registered under Companies Act.  On getting registered, the company acquires its own separate legal entity, separate from its members.  This is the reason a company is called a legal entity.
answered Jul 10, 2016 by jbsclasses (3,971 points)
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