BSB111 Study Guide - Final Guide: Legal Personality, Corporate Social Responsibility, Limited Liability
Document Summary
Background: a company is an artificial entity recognised by the law as a legal person with its own rights and liabilities, the terms company & corporation are often used interchangeably. In aus, a company comes into existence when it has been registered by the australian securities and investments commission (asic). A company has 2 characteristics: separate legal entity, limited liability. Limited liability: this means that the shareholders of the company are liable only to the extent of any amounts unpaid on their shares in the winding up of the company. Any creditors who are still owed money cannot claim from the shareholders" personal assets: this is not the same for a stole trader or partnership they have unlimited liability. Corporate governance has come under increased scrutiny as a result of high profile corporate misconduct and concerns over the management of corporations.
