Features Of A Company Flashcards
What is a company considered as in legal terms?
A company is considered an ‘artificial person’, while individual people are ‘natural persons’.
What are the contractual rights and obligations of a company?
As a legal person, a company may enter into contracts with other persons – individuals or other companies.
Who is liable for a company’s debts?
The company itself is liable for its debts, not its owners (the shareholders).
Who owns the assets of a company?
A company owns its own assets; shareholders own shares in the company, not the assets.
To whom does a debtor owe money in the context of a company?
The debtor of the company owes the money to the company, not to its owners.
Who manages a company?
Companies are managed by their directors, who should be members of the company.
Can shareholders also be directors in a company?
Yes, in small companies, shareholders and directors may be the same individuals.
Is a company liable to pay tax?
Yes, a company is personally liable to pay tax on its income (profits).
Who is liable if a company breaks the law?
Usually, the company itself is liable, although owners or officers (mainly directors) may be personally liable in certain circumstances.
