4.　Ownership - A company is treated as a separate person in law. It means that a company can own property in its own name. It can enter contracts in its own name and is not affected by a change in shareholders. It can take legal actions against other persons.
For example, John set up different companies to handle different business contracts respectively so that even one of the business contracts was bad, it would not affect his other business dealings.

Another example is that Mary, as a property speculator, likes to make use of this characteristic by setting up different companies to hold landed properties, with each company to be the owner of a landed property. The sale of the property can be easily completed by transferring all the shares of the company to the buyer. The change of the ownership of the shares of the company is equivalent to the change of the ownership of the property.

　 5.　Management - A company is said to have the characteristic of separation of ownership and management. It means that the shareholders are the owners of the company, while the directors and secretary are the management personnel of the company. As the shareholders only have a limited liability, they can appoint management and business experts to help them to run the business. They can just make contribution to the capital of the company. They are the investors and get dividend payment if the company makes profits.
4 Disadvantages of Limited Company
　On the other hand, a limited company has the following disadvantages :
Publicity - A company is required to disclose certain information to the public by filing returns with the Companies Registry. For example, a company has to put the following information on public record : capital structure, personal particulars of shareholders, directors and secretary, mortgage and transfer of shares; further a public company has to disclose its annual accounts to the public.
Expenses - A company is regulated by the Companies Ordinance. The procedures for setting up a company is complicated when compared with that of a partnership. In addition there are continuing obligations on the part of the directors and secretary of the company to file prescribed returns with the Companies Registry. A company is also required to prepare audited accounts.
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