Company Law Assignment | Company Act 2006

Added on - 28 Jan 2020

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Company law
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................2TASK 1............................................................................................................................................2REFERENCES................................................................................................................................3
INTRODUCTIONCompany act 2006 contains provision which helps in maintaining fair environmentwithin the organisation. The organization is the artificial judicial person which makes contract byusing their own name but in this case one of authority is required to sign on such contractdocument. It prescribes the right and duty of director, promoter within the organisation. Thisstudy consists of lifting veil which arise obligation to director for their illegal act. Further, preincorporation contract within organisation arise before company incorporate Moreover,memorandum of association and article of association describes the main purpose for which thecompany is incorporated. On other hands, ultra virus doctrine protect to managerial person.TASK 1Case: Anushka and taiwo is going to incorporate vintage car company so that they can soughtadvice for legal formation and clarify some doubt which arise in mind of anuska and taiwo.1. Corporate personality and lifting veilCorporate personality – Company is the artificial judicial person which is different fromtheir owner because it makes contract by using common seal. Thus, director and promoter willnot be liable for the firm’s activities. However, it is the legal person in the eyes of law which hasthe right to take decision by using its own name. Thus, Anushka and taiwo will not be liable forany contract made by organization by using its own name.Lifting veil – It Is doctrine which removes the veil of corporate personality in case ofAnushka and taiwo involved in unfair activities which are illegal in the eyes of law. This actstates that lifting veil protected to mangerial person from activities arise from loss or legalprocedure. Hence, Anushka and taiwo will be liable for illegal act by using the name of thecompany.2. Advantages and disadvantage of company and partnershipBasis of differencePartnership advantagesCompany disadvantageLegal formalityFormation ofthepartnershiprequired less formalities or nolegal formalities.Formation of company isrequired to follow thecomplicated process.AccountIt is required to maintain justIt needs to maintain account as
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