A company is defined in Section 1 of the Companies Act 1 as a juristic person incorporated in

terms of the Act and in terms of Section 19(1)(b) 2, a company is a legal person with separate
legal personality. Separate legal personality affords greater protection for shareholders and
directors in the sense that they cannot be held liable for the debts and liabilities which belong
to the company.3 It can be said that metaphorically, once a company has been formed, a veil is
drawn between the company and its shareholders and directors, which separates the company
from its shareholders and directors.

The concept of limited liability and the separate legal entity doctrine form the cornerstone of
modern corporate law, enabling businesses to function as distinct legal entities with distinct
rights, responsibilities, and liabilities. This research paper seeks to unravel the intricacies of
these concepts within the framework of corporate personality, examining their historical
evolution, legal implications, economic significance, and influence on contemporary business
practices.

1
Companies Act, 2013, s 1
2
Companies Act, s 19(1)(b)
3
Majumdar, A. K. and Kapoor G.K., Company Law and Practice (Taxman, 17th edn., 2017)