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When we talk about a company, we are referring to a group of individuals who have come together to achieve a common goal. A company has a separate and distinct identity from its owners and employees, and it is considered as a contract that gives birth to a legal moral person. In this article, we will explore what this means and why it is important.

Firstly, let`s define what a legal moral person is. A legal moral person is an entity that is recognized by the law as having rights and duties, just like a natural person. This means that a company can own property, enter into contracts, sue and be sued, and do many other things that individuals can do. This is possible because a company is considered a separate entity from its shareholders and directors, and it has a legal personality of its own.

The concept of a company as a legal moral person is crucial because it allows for the protection of the interests of the company and its shareholders. For example, if a company is sued for breach of contract, the lawsuit is directed at the company and not at its individual owners or employees. This protects the personal assets of the shareholders and directors from being seized to satisfy the judgment.

Furthermore, the legal personality of a company enables it to undertake transactions and make decisions in its own right. For example, a company can enter into a lease agreement for office space or purchase equipment without the need for each shareholder to sign the contract individually. This makes it easier for companies to conduct business and achieve their objectives.

In addition to its legal personality, a company also has a moral personality. This simply means that a company is expected to act in a socially responsible manner and to adhere to ethical standards. A company has a responsibility to its shareholders, employees, customers, and the wider community. This includes obligations to pay taxes, provide safe working conditions, and produce goods that are safe and of high quality.

In conclusion, the concept of a company as a contract that gives birth to a legal moral person is essential to modern business. It allows for the protection of the interests of the company and its shareholders, and enables companies to undertake transactions and make decisions in their own right. It also places a moral responsibility on companies to act in a socially responsible manner and to adhere to ethical standards. As a professional, it is important to understand these concepts when working with companies and to communicate them clearly and accurately to readers.