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Legal Personality of a Limited Company

In: Business and Management

Submitted By Paclin
Words 679
Pages 3
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DEPARTMENT OF ADMINISTRATION
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Course: Company Law
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Assignment: Discussing the Legal personality of Companies
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Submitted to: Termpaperwarehouse.com
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Submitted by: Paclin
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Date Submitted: 25th March 2014
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Lord MacNaughten stated that, “The company is at law a different person altogether from the subscribers to the memorandum: and although it may be that after incorporation the business is precisely the same as it was before, and the same persons are managers, and the same hands receive the profits, the company is not in law the agent of the subscribers or trustees for them”. The significance of what Lord MacNaughten stated starts to raise some of the important values of modern company law. I do agree the separate legal personality of a company is usually the explanation as to why a company has been chosen for the conduct of some business enterprise. The persons associated in the company and interested in the enterprise have only limited exposure to the liabilities of the company. In terms of section 21 (1) of the Companies Act, 1984, a registered company is deemed to have the capacity of a natural person of full capacity and any act done on behalf of the company will be…...

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