Legal entities

Legal Forms of Business: Week 2 Legal Forms of Business In business, the first decision that is made is usually the most difficult. When making business decisions, the owner must decide what types of business organization is the best for the company. There are seven forms of business that will be discussed as well as scenarios in which each of these forms of business would be the preferred form. This paper will also justify why the corresponding business form is preferred. The forms

other cases that are related. From the beginning of the judicial history, the lawyers and judges have emphasized about how a corporation is an intangible legal entity alone without body or soul (Arthur and Machen, 1911). The doctrine of separate legal personality basically is about how a corporation and the owners were two different entity (Kelly, Hammer and Hendy, 2014). The Limited Liability Act which replaced by the Joint Stock Companies Act 1856, is where the members are only liable up to

In any means, corporation exists independently from its owner and this principle is called the doctrine of separate personality. Doctrine of separate personality is the basic and fundamental principle in a Company Law. This principle outline the legal relationship between company and its members. Company’s assets belong to the company not the shareholders as assets are the equity for creditors. Company must use up all its assets to pay off the creditors if it became insolvent. The same applies to

Human beings are commonly legal person but humanity is a state of nature which may be or not be deliberated. In the eighteenth century business relations were considered to be contracted between “real” persons, whereas after that time legal relationships had been extended to relations between companies, considered as separate legal personality. In company law it has been held that a company is considered as a separate legal entity holding its own assets, debts and equities. Prior to 1840s a company

The Principle of Separate Corporate Personality The principle of separate corporate personality has been firmly established in the common law since the decision in the case of Salomon v Salomon & Co Ltd, whereby a corporation has a separate legal personality, rights and obligations totally distinct from those of its shareholders. Legislation and courts nevertheless sometimes "pierce the corporate veil" so as to hold the shareholders personally liable for the liabilities of the corporation. Courts

franchises. We’ll focus on the first as it’s the one related to the Case at law we’ll review later. A sole proprietorship is a business owned and operated by one person which is not registered as a corporation or a limited liability company, there is no legal distinction between the individual and the business owner which means the owner is entitled to all the profits from the business as well as being responsible for all business debts, losses and liabilities. A sole proprietorship has several pros; ease

of equity when the corporate veil is allowed to be lifted and the assets of the owners are exposed. (Dignam) Throughout this paper, I will discuss the difference between a corporation and a private entity and when the corporate veil can be lifted according to the cases in the UK law. Private Entities Versus Corporations In the United Kingdom, different business structures are available to those who wish to establish a business. There are four forms that a company can take in the United Kingdom

As the rapid development of the business, Today, the company law is increasingly becoming important to protect companies’ right and regular their behaviors in the business activities. The company is particularly set up for the purpose of concerning companies and other business organizations regarding sole proprietorship, limited liability companies, unlimited liability companies, etc. According to Black’s Law Dictionary,‘a company is an association of persons interested in a common objective for

‘Lifting the corporate veil’ has been the topic of the legal arguments for many years. The corporate veil refers to a principle where a registered company has a separate personality from its shareholders. As a result, the shareholder was not liable for any liabilities that his company had obtained. However, in some severe circumstances, it is important that the separate identity must not be allowed to use as a protection to wrongful act. In some situation, the corporate veil can provide harmful

separate judicial entity, greater stability etc are some of the main features of a Private Limited Company. Larger businesses prefer dealing with a Private Limited Company than with a Proprietorship or a Partnership Firm. Advantages of Private Limited Company : Separate Legal Entity : A Private Limited Company when incorporated is considered as artificial judicial person. It is a separate judicial entity. A Company can purchase its assets and borrow own funds as a separate judicial entity. The Share Holders