Practical consequences of incorporation, Business Law and Ethics

Assignment Help:

Practical Consequences of Incorporation:

In the course of delivering his judgment in Salomon's case Lord Halsbury stated that "once the company is incorporated, it must be treated like any other independent person with rights and liabilities appropriate to itself". This means that the company, as an independent person, has rights and obligations which are not the same as the rights and obligations of the subscribers to its memorandum and the other persons who will join it later as its members. This is the fundamental attribute of corporate personality which is given practical effect in the following ways:

Limited liability:

The fact that a registered company is a different person altogether from the subscribers to its memorandum and its other members means that the company's debts are not the debts of its members. If the company has borrowed money,it and it alone is under an obligation to repay the loan. The members are under no such obligation and cannot be asked to repay the loan.


Related Discussions:- Practical consequences of incorporation

Law society of england, Law Society of England However the Law Society...

Law Society of England However the Law Society of England is a body corporate constituted through the Law Society of England Act.  Therefore its objects or functions are, amon

What is the meaning of conciliation, (a) Section 63 of the Employment Rela...

(a) Section 63 of the Employment Relations Act provides as follows: "The parties to a labour dispute may jointly refer such dispute for voluntary arbitration to the Tribunal or

What is the major issue concerning the international law, What is the major...

What is the major issue concerning the international law The major issue concerning the international law is its implementation within the domestic system. A State can enforce

What do you mean by garnishee orders, Q. What do you mean by Garnishee Orde...

Q. What do you mean by Garnishee Orders? The ATO has the power to issue garnishee orders which allow recovery of debts from a person's bank account, wage or from people who owe

Removal of directors - company management, Removal of Directors: By s....

Removal of Directors: By s.185(1) a company may by ordinary resolution remove a director before the expiration of his period of office, but notwithstanding anything in the art

Determine the primary criticism of the stages model, Determine the primary ...

Determine the primary criticism of the stages model The primary criticism of the stages model is that it tends to be front-loaded, which means, more attention is paid to policy

State article 10 of air and outer space law, State Article 10 of air and ou...

State Article 10 of air and outer space law Article 10 allows the aircraft to cross the territory of a contracting State without landing, and further states that every aircraft

Income statement, Frantic Fast Foods had earnings after taxes of $420,000 i...

Frantic Fast Foods had earnings after taxes of $420,000 in 2012 with 309,000 shares outstanding. On January 1, 2013, the firm issued 20,000 new shares. Because of the proceeds from

Golden rule - presumptions of construction, Golden rule: Conversely th...

Golden rule: Conversely the so-called 'golden' rule will be utilized through the court in order to avoid arriving on an absurd decision under the literal rule of construction.

Define the term - inaction and crises, Define the term - Inaction and crise...

Define the term - Inaction and crises We know that the standard social planner does not show and delay or have tendency of inaction and adopts a policy as soon as it is proved

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd