XYZ Innovations $($Pty$)$ Ltd$.$ is a tech startup founded by John and Sarah, who are childhood friends. The company specializes in developing cutting$-$edge software solutions for various industries. Over the years, the company has grown rapidly and attracted investors due to its innovative products. However, recently, XYZ Innovations $($Pty$)$ Ltd$.$ has been facing financial difficulties, and there have been disagreements between the founders regarding the company's future.

$1\mathrm{.}1$ Given the company's financial difficulties, John and Sarah are concerned about their personal liability. They want to understand how limited liability and the concept of separate legal personality, as provided by the Companies Act $71$ of $2008$ operate.