Introduction to Company Law / Legal Personality and Types of Registered Companies Flashcards
What is a separate legal entity
When an organisation becomes it’s own business having responsibilties, rights and financial obligations like a normal human being
What is the nature and purpose of company law
Promote investment and innovation
protect and govern stakeholders interests.
Promote businesses in a fair manner protecting interests of the people involved.
What are the sources of company law
Rules of the company are created based on government law, agency regulations, court decisions and international agreement to ensure business is run fairly and effectively.
companies act 2006
Rules and regulations modernized to make sure the company is run fairly and lawfully.
What is a white paper in company formation
A document where the governement seeks feedback from the general public and discussing how they run the company.
Philanthropy
Do good
what does corporation aggregate mean
When organisations share common goals and interests with limited liability.
What are the consequences of separate legal personality
Legal relationships
Rights and responsibilities
Separate personality to its’s memebrs
What is a The case established the principle of separate legal personality.
Mr. Salomon's assets were safeguarded as distinct from the company's assets.
The company, despite being a one-man company, was legally recognized.Registered Company:
Registered companies exhibit professionalism, limited liability for shareholders, adherence to legal
requirements, a separate legal personality, corporate governance, and a complex organizational
structure.
What are the facts of Salomon V Salomon case
The case established the principle of separate legal personality.
Mr. Salomon's assets were safeguarded as distinct from the company's assets.
The company, despite being a one-man company, was legally recognized.
What is a share
A share is the percentage of rights or power the shareholder has in the company.
What are the features of a public limited company
Access to sell shares to the public
Minimum of £50,000 share capital
Required to publish their financial accounts
Listed in the FTSE.
Traded on stock exchange
What are the features of a private limited company
Cannot sell shares to the public
no initial investment necessary
Not needed to publish their financial accounts
no minimum capital required
no taxes
What is a holding company
It’s a parent company with limited liability holding enough shares in another company to control the company.
What is a subsidiary
A company own or controlled by another company for e.g. a parent company
what are the consequences of separate legal personality
Companies can sue and be sued in their own name
companies can hold property
perpetual succession
exception for separate legal personality
Agency
Facade
Economic unit group of companies
What is agency
Authority to create legal relations between principal and third party
Application INO form
The process of forming a company initiates with the completion of the INO application form, which
serves as the initial step in the company formation procedure.
Memorandum of Association:
The Memorandum of Association delineates the company's fundamental objectives and scope of
operations. It serves as a foundational document outlining the company's existence.
Articles of Association:
The Articles of Association encompass the rules governing the internal management and governance
of the company. It provides a framework for decision-making, operational procedures, and internal
regulations.
Additional Information:
Supplementary details beyond the Memorandum and Articles may be required, providing
comprehensive insights into the company's structure, governance, and other relevant aspects.
Certificate of Incorporation:
Upon fulfilling the regulatory requirements and completing the formalities, the Certificate of
Incorporation is issued, marking the official recognition of the company's existence.
Company Act 2006 Regulatory Requirements:
Adherence to the regulatory stipulations outlined in the Company Act of 2006 is imperative,
ensuring legal compliance and proper incorporation.