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Business Law - Essay Example

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Summary to essay on topic "Business Law"
Among different forms of business ownerships, sole proprietorship and general partnerships are commercial unincorporated business forms and those engaged in such business together are…
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Download file "Business Law" to see previous pages... ited depending on the liability of the shareholders and private or public depending on whether they are prohibited to issue shares to the public or not. According to the business and company laws, incorporated companies are ‘legal persons’ and therefore they have ‘corporate personality’
This piece of research paper is an attempt to explain and evaluate the concept of ‘corporate personality’. Bas
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ed on legal cases, this paper examines how courts responds to the specific cases of corporate personality and analyze the court’s attitude to this part of the law.
In legal perspectives, a corporate person is an association like a business firm, a educational or religious institution, which has been incorporated in order to become a ‘corporate person in law’, with certain rights, duties, obligations and privileges that can be subjects matters of legal dispute (Corporate Personality). Members and the corporation or business entity is legally different and therefore the rights and liabilities of the corporate person are never similar with that of its owners or members. For instance, when the managing director or all of the managers resign from their duties without assigning the duties to new successors, the business and its trading don’t come to an end and it will still be legally a corporate body.
When a business is registered as a company under the Company Registration Act, the business becomes an entity in its own rights, with legal boundaries of responsibilities, rights and duties that are entirely different from those of its members. In the modern system of company registration, the incorporated company turns to be a business with ‘separate legal entity’, and this outcome is referred as ‘corporate personality’ (Talbot, p. 23).
The company incorporated under the Companies Act has been established as a distinct entity by the House of Lords’ decision. The concept that a non-human entity could be treated as the subject of rights and duties in ...Download file "Business Law" to see next pagesRead More
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