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Corporation Laws - Assignment Sample

   

Added on  2021-05-31

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Running head: CORPORATION LAWCorporation LawName of the StudentName of the UniversityAuthor Note
Corporation Laws - Assignment Sample_1
1CORPORATION LAWIssue:The issue in this case in concerned with various facts. Firstly, the issue is that whetherIndustrial Machines Ltd can personally sue Roger. Secondly, the issue is concerned with the factthat whether the decision taken by the Commonwealth Department of Industry was appropriate.Law:It is evident that a company has a separate legal identity which is distinct andindependent from the existing shareholders1. Therefore, it is worthwhile to refer here that as acompany is regarded as a separate legal entity, therefore it can enjoy or dispose properties in itsown legal identity. In this regard, it is worth stating that the assets of a company are equallycontributed by the shareholders of the company but they do not own the property jointly orprivately2. Therefore, in case of any deceit or wrongful activities on the part of the shareholders,the company shall be held liable. A company has the capacity to sue in its own name. It can alsobe sued in its own corporate identity. It is worth mentioning that in case of any loss incurred bythe shareholders of the company, the company shall be held directly liable and not theshareholders3. In order to explain the abovementioned facts it is worthwhile to refer landmarkcase of Salomon v Salomon & Co Ltd [1897] AC 224. In this case, it was observed that Salomonwas the sole shareholder of the company. The issue related with the case was that the unsecuredcreditors claimed compensation for covering the losses incurred by the company. Therefore, itwas decided by the Court that, as Salomon was the shareholder of the company he shall not be1 Joy, Joseph. "Legal Entity Operating Structure."Divestitures and Spin-Offs. Springer, Boston, MA, 2018. 157-168.2 Roness, Paul G. "Types of state organizations: Arguments, doctrines and changes beyond new publicmanagement."Transcending new public management. Routledge, 2017. 77-100.3 Watson, Susan. "How the Company Became an Entity: A New Understanding of Corporate Law." (2015).4 Salomon v Salomon & Co Ltd [1897] AC 22.
Corporation Laws - Assignment Sample_2

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