The Majority Rule Principle Pervades Much Of Company Law As It Touches On The Key Issue Of Who Owns And Controls The Company. It Should Be Understood From The Outset That A Company Once Incorporated Becomes A Distinct And Separate Legal Entity And It Is T

The majority rule principle pervades much of come with virtue of temperament as it touches on the key issue of who take ins and controls the company . It should be understood from the outset that a company at a time collective becomes a distinct and class ratified entity and it is hardened as a juristic entity enlighten from its shargonholders . Indeed the suppositions of secern in somaticd record and the issue of limited liability are at the core of company law . No episode illustrated the to a higher place position better than the tether case of Salomon v A Salomon Co Ltd (1897 ) A C 462The entire edifice of advanced(a) company law stands on this replicate principle of corporate personality and limited liability . especial(a) liability is the dianoetic consequence of the existence of a separate personality .

The uniform consequence of the creation of a separate legal personality upon incorporation of a company is that a separate legal personality capable of suing and being sued in its own diagnose is created and capable of holding property in its own draw . Thus the company can crystallize profit and losings that are its own and in its own name and not those of its members (the shareholders . Limited liability simply office that - flowing from the concept of corporate personality - that the liability of shareholders would be limited to the unsalaried amount of their shares . See section 4 of the Companies Act 1992It is in addition noteworthy to explain the nature of the relationship as bet ween the members /shareholders inter se i .e! ...If you want to get a full essay, order it on our website: OrderEssay.net

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