As discussed, company is an association of persons formed for common purpose of business, with the aim of earning profit. The company enjoys the status of an artificial person so this status entitled company, can sue and it can be sued by his own name if any matter arises out during the course of business transactions etc. It has a separate legal entity and its own name distinct from its members who constitute the company. Due to its artificial character, law allows a company has its own property and the shareholders cannot claim the property of the company as their own property.