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.

$1\mathrm{.}3$ 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. $(10)$