Report No. 101
4.4. Company as a distinct entity the legal aspect.-
In this context, we would like to stress the distinct importance of a company as an entity. Take the legal aspect. It is well recognised that a company is a separate entity from the shareholders, and that the rights of the company are distinct from those of the shareholders. It is only those rights which a company has, that could be enforced by it1. In fact, the whole object of the law of corporations is to bring into existence a legal being and to put life, as it were, into the group itself.
1. Salmen v. Salmen & Co., 1897 AC 22 (HL).