a corporation is a separate legal entity distinct from its shareholders or members in south africa

Question

true or false

Answer 1

True. In South Africa, a corporation is regarded as a separate legal entity distinct from its shareholders or members. This means that a corporation can own property, enter into contracts, sue and be sued in its own name, and it is responsible for its own debts and liabilities, separate from those of its shareholders or members. This principle is fundamental to company law in South Africa, similar to many other jurisdictions.