A public stock company is considered by law to be an entity with legal rights and obligations. This is known as legal personality.
The public stock company enjoys four characteristics that make it an attractive corporate form, which are, limited liability for investors, legal personality, transferability of investor ownership, separation of legal ownership and management control.
To have legal personality means to be capable of having legal rights and duties within a certain legal system, such as to enter into contracts, sue, and be sued. Thus, it is the ability of any legal person to amend rights and obligations.
Hence, A public stock company is considered to be an entity with legal rights and obligations.
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