LAWS2014 Lecture Notes - Lecture 5: Financial Statement, Qintex, Liquidated Damages
Document Summary
Once registered under the ca, the company is a separate legal entity {separate from members and directors} (salomon v salomon and co ltd). Under the ca, it is irrelevant to investigate the motive of a sole trader for incorporating a business. Nb: a company limited by guarantee does not have the power to issue shares. (124(1) ca). The company is liable for its own debts. Because the company is limited by [shares or guarantee], members are only liable for unpaid calls upon winding up. Related companies are separate legal entities (industrial equity limited v blackburn); Even within a corporate group, directors owe duties only to the company of which they are a director (walker v wimborne). Member has no legal or equitable interest in company"s property (macura v northern assurance co ltd; cf s 1070a (1) ca) - interest of the shareholders is in the shares, not the company"s property. Company can commit an offence (hamilton v whitehead).
