THE NATURE OF LEGAL
PERSONALITY
Chapter 3 of the Subject Guide
,INTRODUCTION
, INTRODUCTION
Simply put, the company really exists as a separate legal personality.
There are three potential consequences of this:
i. Capable of suing and being sued in its own name;
ii. Holding property in its own name; and
iii. Making profits and losses that are its own and not those of its members.
Members and shareholders are inter-changeable for most part; however,
‘members’ implies that not only do members provide Capital, but also
have rights and obligations to the company and to each other over the
life of the company.
PERSONALITY
Chapter 3 of the Subject Guide
,INTRODUCTION
, INTRODUCTION
Simply put, the company really exists as a separate legal personality.
There are three potential consequences of this:
i. Capable of suing and being sued in its own name;
ii. Holding property in its own name; and
iii. Making profits and losses that are its own and not those of its members.
Members and shareholders are inter-changeable for most part; however,
‘members’ implies that not only do members provide Capital, but also
have rights and obligations to the company and to each other over the
life of the company.
