BUSN2101 Chapter Notes - Chapter 3-4: Unsecured Creditor, Investment Fund, Trading While Insolvent
Document Summary
> company as a separate person from its members and those who manage its operations. > the company can incur and receive obligations and hold property in its own name. > the company can be the plaintiff or the defendant in civil proceedings. > can enter legal relationships with its participants: debtors and creditors/ employers and employees. > income tax assessment act 1936 (cth): companies are treated as separate entities liable for income tax. Facts: salomon ran a boot manufacturing business as a sole trader-> he and his fam mem were the only shareholders and he sold his business to the company. > the company paid him part of the purchase price for the business and agreed to pay the reminder over time. The company gave him security over its assets in the form of a company charge, to secure the obligation to pay. > the (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s assets had to (cid:271)e used to pa(cid:455) hi(cid:373) i(cid:374) full.
