Company Law - Case Study Example

Only on StudentShare

Extract of sample
Company Law

These people are called "owners", composed of the incorporators, directors, and the stockholders. Another point to consider is that a corporation, once approved, has a legal personality separate and distinct from its owners. Having a legal personality separate and distinct from its owners gives the corporation a limited liability to shareholders. Limited liability is a legal doctrine which means that if a "plaintiff wins a court judgment against the corporation, he (the plaintiff) cannot satisfy the judgment out of the personal assets of the owners, rather, the plaintiff must collect from the assets of the corporation".2 Limited liability is likened to a "veil" that offers the owners of the business protection for their personal assets, like for instance, if one of the co-owners or employees commits an unlawful action that injures someone, or if someone sues the corporation for non-payment of debt.3
But is the limited liability doctrine absolute The answer is it is not.4 The corporate law protection of limited liability can be lost through 1) piercing of the corporate veil, 2) defective incorporation, 3) improper signing of documents.5 This essay aims to discuss piercing the corporate veil by first explaining the limited liability rule followed by ...Show more

Summary

There are no rules, other than the principles of fairness and justice, to dictate when the court should lift the veil of corporation, rendering therefore the parent company liable for the debts of the subsidiaries."
In this period of recession which is experiences in all parts of the world, many are inclined in going into business…
Author : nadereldred
Save Your Time for More Important Things
Let us write a custom case study on your topic
"Company Law Case Study"
with a personal 20% discount.
Find out more

Related Essays

company law, study case
In addition, relevant provisions in respect of allotment of shares have to be scrutinised. The Companies Act 2006, under section 171, requires directors to act as per the provisions of the constitution of their company. Moreover, directors have to exercise their powers only for the purposes for which these powers had been conferred on them.
19 pages (4750 words) Essay
organisation law case study
They also undertook an expansion of business to Alaska without a proper assessment of the legal and financial issues involved. The purchase price for the equipment was twice as high in comparison with the original price they were paying to the former supplier.
10 pages (2500 words) Research Paper
Business Law/ Case Study
Knarlesn is defamation. Knarles wants to cancel the agreement that Chetum made with Knarles’ son Barkley in his absence. He does this by telling Chetum that he will send him a check to cater for what he paid the maintenance company, and he will not even ask for payment for the job already done.
8 pages (2000 words) Essay
Company Law Master Case Study
In accordance with the above provisions Madona can inspect the register of members of Posh Cars Limited containing the names, addresses, and the details of shareholding of all the members of the company at the registered office of the company. In case any regulation has been enacted specifying the maintenance of the register of members by the Secretary of state then the register of members can be expected in such place.
12 pages (3000 words) Case Study
COMPANY LAW / Case Study
At the beginning of the last year, the Articles of Association provided for payment of 15,000 to non-executive directors. However, through suitable amendments to the Articles, this figure was brought down to 10,000 nine months later. Since other directors have received 15,000 for the last year, Camilla is also demanding that the same amount be paid to her.
6 pages (1500 words) Case Study
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT