This is a part of lecture presented by Mr. P.C Jangir, Vice Principal of Biyani Girls College. Generally it is assumed that company and members are separate, it is based on the principle /Doctrine of separate legal existence .It means the property of the company is not the property of members .It is related to company only. If there is any loss to the company me3mbers are not liable to the company, because company and members are separate. If there is a fraud, misappropriation of funds, scandal, scan or any type of un law full activity performed by any member of directors of the company then they will be held liable for these un law full acts . The concept of separate legal existence or lim9ited liability will not apply .The corporate Vail will be lifted and any member who is found guilty will be punished and held responsible. Member’s liability will be unlimited.
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