Doctrine of Separate Legal Personality

The Doctrine of Separate Legal Personality means that a company is recognized as a separate entity from its owners or shareholders. This legal status allows the company to own property, incur debts, enter into contracts, and sue or be sued independently of its owners. Essentially, the company has its own legal rights and obligations, distinct from those of the individuals involved. This separation provides protection for shareholders, as their personal assets are generally not at risk if the company faces legal issues or debts.