BTC1110 Lecture Notes - Lecture 11: Legal Personality, The Only Exception, Chief Executive Officer
4 Sep 2018
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Features of a company: the main feature of a company is that it is a separate legal person. A(cid:272)(cid:272)o(cid:396)di(cid:374)g to s. (cid:1005)(cid:1006)(cid:1008), (cid:862)a (cid:272)o(cid:373)pa(cid:374)(cid:455) has the legal (cid:272)apa(cid:272)it(cid:455) a(cid:374)d po(cid:449)e(cid:396)s of a(cid:374) i(cid:374)di(cid:448)idual. (cid:863: as a separate legal person: A company is separate from its owners (shareholders) and its managers (ceo and directors. ) A (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s o(cid:271)ligatio(cid:374)s (cid:894)o(cid:396) de(cid:271)ts(cid:895) a(cid:396)e its o(cid:449)(cid:374), (cid:374)ot its age(cid:374)ts (cid:374)o(cid:396) its o(cid:449)(cid:374)e(cid:396)s. A (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s o(cid:449)(cid:374)e(cid:396)s (cid:894)sha(cid:396)eholde(cid:396)s(cid:895) ge(cid:374)e(cid:396)all(cid:455) e(cid:374)jo(cid:455) li(cid:373)ited lia(cid:271)ilit(cid:455) A (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s (cid:373)a(cid:374)age(cid:396)s a(cid:396)e also (cid:374)ot (cid:894)i(cid:374) ge(cid:374)e(cid:396)al(cid:895), pe(cid:396)so(cid:374)all(cid:455) lia(cid:271)le fo(cid:396) the (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s de(cid:271)ts or obligations (cid:272)o(cid:373)pa(cid:396)ed to pa(cid:396)t(cid:374)e(cid:396)s(cid:859) lia(cid:271)ilit(cid:455). A (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s p(cid:396)ope(cid:396)t(cid:455) is its o(cid:449)(cid:374), (cid:374)ot the (cid:373)a(cid:374)age(cid:396)s o(cid:396) the o(cid:449)(cid:374)e(cid:396)s. A company can sue and be sued in its own name. A company can commit crime or tort. It has perpetual succession, which means a corporation continues to operate despite a change in ownership. If shared are sold, or an owner died, the company still continues to exist.
