BUSINESS LAW - COMPANY LAW
TRUE OR FALSE
In terms of legal form, companies differ from partnerships, in that they are bodies corporate or
corporations.
They have a legal existence in their own right, apart from and independent of their members. Such is not
the case with respect to partnerships - TRUE
In terms of legal form, companies DIFFER from partnerships, in that they are bodies corporate or
corporations.
They have a legal existence in their own right, apart from and independent of their members. Such is
NOT the case with respect to partnerships
Which are the 4 ways of forming a CORPORATION? - 1. BY GRANT OF ROYAL CHARTER
2. By special Act of Parliament
3. By registration under the Companies Acts
4. By registration under the Limited Liability Partnership Act
Explain the The doctrine of separate personality - A company one formed, has its own distinct legal
personality, separate form its members
What are these?
1. Limited liability: Members of a corporation are not
responsible for its debts without agreement.
2. Perpetual succession: As the corporation exists in its own right, changes in its membership have no
effect on its status or existence
3. Business property is owned by the company: Any business assets are owned by the company itself,
not the shareholders
4. The company has contractual capacity in its own right and can sue and be sued in its own name
5. Liability in crime and tort: Companies may be liable in relation to such strict liability offences
, 6.The rule in Foss v Harbottle: This states that where a company suffers an injury, it is for the company,
acting through the majority of the members, to take the appropriate remedial action - THE EFFECTS OF
INCORPORATION
Explain The veil of incorporation - There are a number of occasions, both statutory and at common law,
when the doctrine of separate personality will not be followed. On these occasions, it is said that the veil
of incorporation is pierced
1. Under the companies legislation: provides for personal liability of the member
2. At common law: Will not permit the corporate form to
be used for a clearly fraudulent purpose or to evade a legal duty
Which are the Types of Companies? - 1. Limited and unlimited companies
2. Public and private companies
3. Parent and subsidiary companies
4. Small, medium and large companies
5. Overseas companies
tRUE OR FALSE
Limited liability can be established by:
1. Shares
2. Guarantee - TRUE
Limited liability can be established by:
1. Shares
2. Guarantee
This description of companies relates to the way which large business enterprises tend to operate
through a linked structure of distinct companies :
PARENT AND _____ ______ - PARENT AND SUBSIDARY COMPANIES
TRUE OR FALSE
TRUE OR FALSE
In terms of legal form, companies differ from partnerships, in that they are bodies corporate or
corporations.
They have a legal existence in their own right, apart from and independent of their members. Such is not
the case with respect to partnerships - TRUE
In terms of legal form, companies DIFFER from partnerships, in that they are bodies corporate or
corporations.
They have a legal existence in their own right, apart from and independent of their members. Such is
NOT the case with respect to partnerships
Which are the 4 ways of forming a CORPORATION? - 1. BY GRANT OF ROYAL CHARTER
2. By special Act of Parliament
3. By registration under the Companies Acts
4. By registration under the Limited Liability Partnership Act
Explain the The doctrine of separate personality - A company one formed, has its own distinct legal
personality, separate form its members
What are these?
1. Limited liability: Members of a corporation are not
responsible for its debts without agreement.
2. Perpetual succession: As the corporation exists in its own right, changes in its membership have no
effect on its status or existence
3. Business property is owned by the company: Any business assets are owned by the company itself,
not the shareholders
4. The company has contractual capacity in its own right and can sue and be sued in its own name
5. Liability in crime and tort: Companies may be liable in relation to such strict liability offences
, 6.The rule in Foss v Harbottle: This states that where a company suffers an injury, it is for the company,
acting through the majority of the members, to take the appropriate remedial action - THE EFFECTS OF
INCORPORATION
Explain The veil of incorporation - There are a number of occasions, both statutory and at common law,
when the doctrine of separate personality will not be followed. On these occasions, it is said that the veil
of incorporation is pierced
1. Under the companies legislation: provides for personal liability of the member
2. At common law: Will not permit the corporate form to
be used for a clearly fraudulent purpose or to evade a legal duty
Which are the Types of Companies? - 1. Limited and unlimited companies
2. Public and private companies
3. Parent and subsidiary companies
4. Small, medium and large companies
5. Overseas companies
tRUE OR FALSE
Limited liability can be established by:
1. Shares
2. Guarantee - TRUE
Limited liability can be established by:
1. Shares
2. Guarantee
This description of companies relates to the way which large business enterprises tend to operate
through a linked structure of distinct companies :
PARENT AND _____ ______ - PARENT AND SUBSIDARY COMPANIES
TRUE OR FALSE
