business law

Question 1

sole proprietorship = ?

Answer 1

business owned by one person (sole trader) with personal and unlimited liability.
Must register with HMRC.
Raising capital is harder.

Question 2

Partnership classifications

Answer 2

• general
• LLP
• limited
  pzrtnerships

Question 3

When will the corporate veil be pierced?

Answer 3

in cases of
- faudulent trading; or
- wrongful trading

Exception to the GR of limited liabilities.
Courts are extremely reluctant to extend the circumstances of piercing the corporate veil.

Question 4

Can the corporate veil be pierced due to tortious liability?

Answer 4

GR = parent company is not responsible over the activities of the subsidiary
Exception = UKSC; extent of control on the subsidiary is only the starting point - broader view is adopted.

Question 5

The court decides whether the corporate veil should be pierced; these GRs apply:

Answer 5

1- Ownership and control are not sufficient to justify the piercing
2- can only be pierced if:
* impropriety linked to company structure to avoid or conceal liability
3- must demonstrate to pierce:
=> control of the Co by the wrongdoer
=> impropriety as co us subject to misuse, co as a device or facade to conceal wrongdoing

Question 6

Form AD011

Answer 6

Change of registered office of the company