Company Law Flashcards
The veil of incorporation
What are the company and its members/shareholders?
What is the company liable for?
What is the liability of the shareholders limited to?
Separate legal entities
It’s own debts
Unpaid shares
Types of organisation
What are the two umbrellas of company types?
Which types of company fall under each umbrella?
Incorporated and unincorporated
Company and LLP inc
Sole trader and partnership uninc
Limited Company What is a limited company in law? What is shareholders liability limited to? What are directors paid? What do shareholders receive? What tax does the company pay? With who is the company incorporated? What are they issued?
Artificial legal person Capital contributed A salary Dividends Corporation tax Companies house Certificate of incorporation
Limited liability What are they governed by? What is members liability limited to? What is it in law? What is it able to do on its own? What tax are partners liable to? Who are they incorporated with?
LLP Act 2000
Capital contributed
Artificial legal person with perpetual succession
Hold property and contract
Income tax on their share of the profits
Companies house
Sole trader
What is the owner not?
What do they have liability wise?
What are they liable to tax wise?
Separated from the business
Unlimited liability
Income tax on profits
Partnerships What are the governed by?(2) What type of liability do they have?(2) What rules apply? What are partners liable to?
Partnership act 1890 or partnership agreement
Joint or several unlimited
Agency rules
Income tax on their share of the profits
What is an agent?
A person authorised to act for another, the principal, ingredient making of legal relations with third parties
