A company is considered to be a separate legal entity Explains what this means?

A company is considered to be a separate legal entity Explains what this means?
A company incorporated under Indian Companies Act, is separate from the persons/individuals who are contributing the capital by way of share capital.

The company so incorporated acts independantly.

This is not like a proprietory or partnership firm where the proprietor/partner/s demise , the establishment also not there to function.