BU231 Chapter Notes - Chapter 27: Legal Personality, Chapter 27
Document Summary
Chapter 27: the nature of a corporation and its formation. Legal person an entity recognized at law as having its own legal rights, duties and responsibilities. A corporation is a person in the eyes of the law; it is a legal person. Corporation a legal person formed by incorporation according to a prescribed legal procedure. Limited liability the liability of shareholders is limited to the amount of their capital contributions. A partner cannot release herself unilaterally from her liabilities (her partners, the firm and clients) simply by retiring. May even be liable for debts contracted after her retirement. A shareholder has no liability for corporate debt. Associated corporations corporations that are related either (a) vertically, as where one corporation controls the other (parent-subsidiary), or (b) horizontally, as where both corporations are controlled by the same person (affiliates) Royal charter a special licence given by the crown to form a corporation for the purpose of carrying on a particular activity.
