Assignment On Concept Of Incorporation

Added on -2020-02-05

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Law of BusinessEnterprises
Table of ContentsINTRODUCTION...........................................................................................................................3Concept of incorporation.................................................................................................................3Separate legal personality................................................................................................................3Limited liability...............................................................................................................................5CONCLUSION................................................................................................................................7REFRENCES...................................................................................................................................8
INTRODUCTIONThe concept of incorporation is a process which forms a legal body with the liability ofthe persons. An organisation incorporates to achieve the goal of a company and making the largeprofit. A company has the separate legal entity from those of its members or other companies.Members has the limited liability to the extent of their part. In a company the role of directorsand members is very important for maintain the working of a company (Vagts and et. al., 2015).Board of directors taking parts in the board meeting of a company and taking decisions by wayof passing resolutions.Concept of incorporationTwo or more members are forming a company by way of legal identity which could beincorporated under the 1930 Act. A corporation forming a new business recognised under thelaw through various names. A company should registered through choosing his name to get thecertificate of incorporation. Company must follow the guidelines by way of following rules ofthe company. Company should have the registered agent to follow all the legality of thedocuments. There should be minimum two members in a company who has the ownership underthis. The directors of the company who take all the decisions of the company. Many types ofcompanies are exist private, public and government (Wild., Wild and Han, 2014). The board ofdirectors has the power to manage the business by ensuring the duties of the directors. There arevarious meetings held to decide the rights and liabilities of the members and issue resolution bythe board. A company has the separate legal entity from its members. In this case Liggett vs LeeCourt ruled that there could be a corporate tax and considers the business for government whenthey writing the tax legislation. If company becomes insolvent then members of the company hasthe limited liability to their company to the extent of business. Company provides rights andliabilities to the directors and members.

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