Q: How is a company an artificial person ?

Ans:  The 'Company' is derived from the Latin Word 'Com' meaning together and 'panis' meaning bread. When persons work together to earn bread, the company is formed.

Company is an artificial person and has separate legal entity. Company has limited liability of members and has common seal.
Company has perpetual existence and is formed by a body .

Keywords Used: 

Artificial person means its man- made through operation of law. As a juristic person, a company is entitled to the rights and obligations to the duties similar to that of natural persons i.e. humans, with certain exceptions to such rights and duties.

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