Legal personality- Artificial persons Flashcards
- Can you explain what SPECIAL CAPACITY of an Artificial person means?
The special capacity of an artificial person refers to the fact that collective entities’ capacity is limited to the convenient and necessary powers to attain their objectives (the scope).
what is the MITIGATION of special capacity?
A collective entity may also practice acts convenient to the pursuit of its purpose which may occasionally move away from its corporate purpose, this is mitigation. For example, a non-profit organization may practice occasional acts of commerce in order to raise funds to practice its charitable purpose.
- Why are the minutes of meetings relevant? What is their purpose
Minutes are a written description of every meeting of the Corporate Body, if a point is not written in the minutes it does not count as a point already discussed. These are useful to maintain order in meetings and protects the members involved.
- What is in your opinion the utility of a staggered board in an organization
The staggered body guarantees that when the body is being renewed (which takes place every 3 years) only a certain amount of members will be renewed (for example a maximum of 3 members out of 7 in a certain year). This is very useful as it guarantees that shareholders will be protected from abrupt changes in policy, which would be a possibility if the entire Body were to change.
If you’re a client of vodafone, sonae, zara you jnow the way a comoany acts and you expect thta behavior to be constant
If we’re investing in a comoany we need predictabiliy
- Can you explain the difference between a FUNCTIONING quorum and a Deliberation quorum?
Functioning quorum refers to minimum percentage of body that needs to be present in order for a meeting to occur (for example, a meeting can only take place if 60% of the body is present), this cuts the need for the entire body to be present in a meeting while also protecting the majority by requiring a certain number.
Deliberation quorum refers to percentage of functioning quorum necessary to make valid decisions. If its 60%, and 5 out of 7 members are present in the meeting, 3 people can make a valid decision, even though they are not the majority of the Corporate Body.
