The explaination of the concepts of seprate legal personality and a disussion on the extent to which courts can peirce the veil of incorpertation.
A company that has a perpetual succession is known as a sperate legal personality, which means that a corperation can continue to exsist without having to transfer its property over with every change of ownershipso it can manage its affairs easier.Its extisatnce ends whenthe company is liquidated where its assets are sold and depts are settled before any left overs can be distributed to its shareholders this is in accourdance with the companies act.Thus the existance of a company can legaly outlast its directors and shareholders which in turrn means independant ecxistaance under the law as one of the main adavanges of being a in a company structure is thzat there is limited liability where it comes to members and the separate legal personality. This power was conferred by the companies act 1844 howeveer not until 1855 was the limited liabilty act passed so that depts of the company remain seperate from its owners.
independent existence under the law, especially in the context of a company being separate and distinct from its owners One of the main advantages of the company structure is the limitation of liability that the separate legal personality gives to the members.
The separate legal entity forms the basis for limited liability of shareholders. Shareholders' liability is limited to the nominal value (=the value assigned to a share as of the time shares are issued) of the shares allotted to them. Separate legal personality means that a company has perpetual succession (=the quality which allows a corporation to continue in existence and manage its affairs over time without having to...
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