Chapter 2 - Legal Personality Flashcards
The law divides persons generally into two broad categories:
- natural persons
- juristic persons (or corporations)
The crown is a special case which does not fit either into natural persons or juristic persons. It is a legal entity which for most purposes is, more or less equivalent to…
The government
The crown includes the reigning monarch who has both a ?????? Capacity and…
Private Capacity as a natural legal person and an official capacity as part of the crown.
The legal position of the crown is generally now governed by…
Statute, the crown proceedings act 1947
For the purposes of law, all human beings are referred to as…
Natural legal persons.
Being a natural legal person Begins and ends…
At birth and death
Some classes of natural person have a special status which may carry with it a limited capacity, that is more limited….
Rights and duties
Those with a limited capacity include…
Minors, persons of unsound mind, bankrupts and aliens.
What is status?
Indicates that a person is part of a particular class or group. Each of which imposes particular obligations and gives particular rights.
A persons status indicates that he belongs to a particular group whereas capacity…
Capacity refers to what that person is legally entitled to do.
Juristic persons, or corporations, are non-human legal entities. For this reason they are sometimes known as…
Artificial legal persons.
Who is referred to as a minor?
The family law reform act 1969 reduced the age of majority from 21 to 18 years and a person who is under that age is referred to in law either as an infant or a minor, although the latter term is more common.
With regards to contracts, there are special rules(discussed more in chapter 4) with regards to minors because…
Special rules to protect minors to enter into contracts.
In the law of torts,(discussed more in chapter 3) minors are usually…
Fully responsible for their acts.
As far as property is cancerned for minors, they may own personal property such as clothing, books, sports equipment or a car but may not hold what is known as…
A legal estate in land.
A minor cannot own a house outright but can do so indirectly as a …
Beneficiary of a trust
Fur the purposes of criminal law, minors divide into two classes:
- full criminal responsibility applies in the case of minors over the age of 10
- children under the age of 10 ads presumed incapable of committing s crime and this presumption can not be rebutted.
Minors involved in litigation must sue through a …
Next friend - an adult who is primarily responsible for any costs awarded against the minor. Minors also defend civil actions through a litigation friend, but a defendant friend/litigation friend is not liable for costs.
The father, mother or legal guardian of the minor normally acts in these capacities.
A minor cannot vote at elections and must be 18 before they can take a …
Seat in Parliament or on the council of a local authority
A minor cannot marry under the age of 16 or marry without…
Consent (usually of the parents) under the age of 18
A minor may not sit on…
A jury
A minor cannot make a valid will unless…
They are a member of the armed service on active military service or a seaman at sea.
In many cases the legal capacity of people who are suffering from mental disorder is restricted, depending on the seriousness of the …
Illness.
Many of the provisions regarding those of unsound mind are detailed in the…
Mental health acts.
The contractual capacity is ??????.
. For those with a mental health condition.
Restricted
Persons of unsound mind are generally responsible for their torts, unless the tort requires a particular state of mind (such as the intention to deceive) which the patient with a mental disability is incapable of forming. A patient with a mental disability would not be liable for actions which were involuntary, I.e those actions over which they had …
Literally no control.
The rights of a person of unsound mind go transfer property or make a will may be restricted. In this context we should mention the court of protection, which is part of the chancery division of the high court. This was established for the protection and management of the property and affairs generally of persons suffering from mental illness. The court has jurisdiction over any patient who, in the opinion of the judge, is incapable by reason of mental disorder of managing and administering his property and affairs. The court has the power to appoint a deputy who may be given such duties and powers as are necessary to …
Manage the patients affairs. The deputy is usually a spouse of near relative of the patient.
A person suffering from disability within the meaning of the mental health acts cannot directly become involved in…
Civil litigation. They can sue through a best friend however.
If a person of unsound mind goes through a marriage ceremony, but cannot understand the significance of the ceremony and the responsibilities which the status of marriage brings, the marriage will be…
Void.
If a person is unable to pay their debts, some or all of their creditors (to whom at least £750 must be owed) may ask the court to make a bankruptcy order against them in respect of those debts. The debtors stairs then pass into the hands of an…
Insolvency practicioner (an accountant or solicitor who specialises in this field)
A person who is adjudicated bankrupt loses certain…
Rights
An in discharged bankrupt cannot:
- sit in either Houses of Parliament
- be a member of a local authority or council
- act as a magistrate
- act as a company director or take part in the management of a company without the permission of the court which made the bankruptcy order
- obtain credit over a certain figure(currently £500) without declaring that they are an undischarged bankrupt.
As a result of changes introduced by th enterprise act 2003, most bankrupts will automatically be discharged after …
One year.
The status of marriage and the legal relationship between married persons is part of…
Family law.
Marriage is a contract, although quite a specific example. It shares many charetsersitcs with other contracts, for example may be either fullly valid, or void, for example where either party is under 16) or voidable (for example, in cases of duress or mistake) again, like any other contract it can be dissolved, in this case commonly known as…
Divorce
The status of marriage brings with it a number of legal consequences, for example, the parties have a generally duty to live with each other and support each other financially. In most respects the rights and duties of married people are the same as those of …
Single people.
Spouses can she each other in either contract or tort. However the law reform (husband and wife) act 1962 (which abolished the old common law preventing one spouse from suing another in tort) provides that the court may stay the action if it appears that…
No substantial benefit would accrue to either party.
A benefit from suing wife etc would be that covered by…
Insurance.
Rights concerning the ownership of property applied to married people in the same way as they do to those who are unmarried. One marriage partner may even be charged with…
Stealing the property of the other although, normally, leave of the director of public prosecutions is required if this is to happen.
Where there is a dispute between spouses as to the title or possession of property, either party may apply to the court for the issue to be determined. On divorce, the courts have additional powers to achieve a fair destruction of the assets between former…
Husband and wife under the matrimonial causes act 1973
What are the two types of corporation?
- corporation sole
- corporation aggregate
The term corporation is generally used to refer to corporation…
Aggregate.
What is a cooperation sole?
A legal person representing an official position which will be occupied by a series of different people.
Give a couple of examples of corporation sole.
- the queen in her build capacity is a corporation sole
- bishops of the Church of England
What is it important to note with corporation soles?
These are legal entities which are quite distinct from the people who hold the position and who merely act on behalf of the corporation.
A bishop for example has his own personal rights and property, however at the same time as a bishop, he fulfills duty and holds church property, when he dies, he ceases to exist as a natural legal person but the office of bishop remains. The corporation can not die and someone new just takes up the role.
Corporations sole can only be crested by?
Statute
What is corporation aggregate?
A legal person consisting of a number of people. Again, like corporation sole, the corporation aggregate is an existence separate to the members personally. If the people die, the corporation does not and new people just take the roles.
All companies registered under the companies act are…
Corporations aggregate.
Corporations aggregate may be formed by…
- royal charter (chartered corporations)
- private act of parliament (statutory corporations)
- registration under the companies act (registered corporations)
How is a corporation chartered?
Granting a royal charter to groups of people who petition the crown for this purpose.
Not all chartered corporations have the word…
Charred in their title, such as the bbc.
how do chartered corporations make changes to its charter?
Submitting a request to the privy council and gaining its approval.
Most companies today are formed by registration under the companies act and special act of parliaments. A royal charter however still provides a useful and dignified means of giving corporate status to charitable, scientific of educational bodies. Most English universities in England are chartered bodies apart from…
The newest group, polytechnics given university Status by statute.
Sometimes a particular statute may be employed to create either a corporation aggregate or a corporation sole. Brand new universities were created this way.
Unlike the bbc the independent broadcasting authority IBA was created by statute. The television act 1954.
Parliament also adopted this method to create most of the old nationalised industries and boards such as the British railways board, national coal board and….
British Gas
Many companies created by statute have now become…
Privatised and reformed as registered companies.
Give an example of a corporation sole created by statute
Ministry of education.
The most common form of corporation is the…
Registered corporation or registered company.
Most registered companies are formed under the provisions of the various companies acts, although various statutes allow incorporation by registration. For example, building societies are created by registration under the building societies acts 1986. Registered companies are therefore formed indirectly by statute rather than…
Directly.
What is the effect - seperate legal personality with regards to a corporation having a seperate legal existence? Also provide the case to use and explain.
A company has a seperate legal existence to just a natural legal person. A case to use to explain this is, Salomon v Salomon 1897
In this case, Salomon set up his boot manufacturing business into a company. He held 20,000 shares and 6 of his family members one share each.
When the company got into difficulty, he held preference over the ordinary creditors. The law therefore treated him personally as an entirely separate person from the company,even though he completed dominated it.
How may somone use a company as a front to evade escaping their responsibilities and use a case.
In Gifford motor company v Horne (1933) Horne worked for gill ford and his contract of employment contained a clause which prevented him from approaching girl fords clients and persuading them to join any business he may start up himself.
Horne left gilford and set up a similar business as a registered company. He then tried to invite girl fords customers to join him. Horne argued that the contract in his clause said it was him personally who shouldn’t persuade the clients to join and that he had a a seperate legal existence now as a company however this argument was rejected and gilford was successful in obtaining a court injunction to prevent Horne fro, approaching girlfords customers.
Corporations are subject to the general law similar to private individuals.
Corporations act through the directors and employees, however it will be the company its self liable for Torts and crimes etc. as a corporation is a non human entity there will be some restrictions in the way…
It can be punished.
A corporation will be established for a particular purpose, it must not act ?????? ?????
Ultra vires - beyond the powers. Basically outside the purpose for which it was established.
The permitted activities of statutory corporations will generally be defined in the statute by which it is…
Created.
Corporations have perputal succession, because a corporation has an existence which is independent of its members, it is not affected the death of any of the latter and may continue, theoretically, forever it can of course he wound up or liquidated it…
For example it if unable to pay its debts.
Registered companies may be either public limited companies or…
Private companies.
Public companies must…
- be limited
- have a share capital
- have a minimum capital on its formation of at least £50,000 with at least 25% subscribed in cash as consideration for the shares (I,e paid up)
- have at least two members and two directors
Shares in public companies are freely transferable and are usually listed on a recognised investment exchange such as the London stock exchange.
A company formed as a public company may re register as a private company following the approval of its shareholders by a special resolution. It’s name must then be altered by replacing Plc with ltd and its memorandum of association must be …
Amended appropriately.
A company which does not state in its memorandum that it is a public company is a…
Private company.
Private companies:
- prohibited from inviting the general public to subscribe for their shares or other securities.
- cannot seek a stock exchange listing
- have at least two members and one director (although EU law now permits a private company to be formed with one member only or for its membership to fall to one. This however does not make it a corporation sole)
- have no statutory minimum share capital requirement
All public companies are l….
Limited
Private companies may be…limited or
Limited or unlimited
Companies may be either generally limited by shares or by…
Guarantee
Where a company is limited by shares…
The liability of the shareholder is limited to the nominal value of the shares.
Shares may be fully or partially paid. If a person who holds 1000 £1 shares fully paid and then the company goes into liquidation, lose the whole money which the shares have cost them, however they have…
No further responsibility for the debts of the company.
If shares are unpaid, for example 1000 £1 shares, 50p paid, and company gets into debt, liability is limited to the cost of the shares plus…
Amount unpaid, which in this example would be £500
Shares generally have a modest value so are usually issued,,.,
Fully paid,
Where a company is limited by guarantee, each member undertakes that on the winding up of the company, they will contribute towards the debts of the company up to a certain, usually …
Modest amount, e.g £100
A company limited by guarantee will only rarely issue shares to its members, but if it does so they are subject to both forms of
Limited liability.