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Law of Business Enterprises Assignment

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Added on  2019-12-18

Law of Business Enterprises Assignment

   Added on 2019-12-18

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LAW OF BUSINESSENTERPRISES
Law of Business Enterprises Assignment_1
TABLE OF CONTENTS1.INTRODUCTION1.2.Separate Legal Personality1.3.Limited Liability 2.4.Piercing of Corporate Identity3.5.CONCLUSION4.6.REFERENCES5.
Law of Business Enterprises Assignment_2
INTRODUCTIONIncorporation of a company has the effect of creating a separate legal personality ofthe entity, which is completely distinct from the personal identity of directors or managingdirectors of an enterprise. Registration of an entity with the concerned authority entitles it toexercise all the functions in order to operate and exist within the market. Incorporation is alegal process which every entity is required to undergo in order to create corporate entity. Atfirst instance an entity which intends to acquire such a position in the market is required tomake a registration under S. 16(2) of the Companies Act 2006. In pursuance to the same acertificate of Incorporation is provided to the concerned company. In accordance to this Act acorporation is created on getting registered with the relevant authority. It results intoformation of an artificial person which is separate in identity from the natural persons whoare imposed with an obligation to manage and operate the company. Thus, in the presentresearch the consequences which are resulted on all the members of a company shall bediscussed.Separate Legal Identity An incorporated company upon receiving the certificate of registration acquires adistinct and separate legal personality. The subscribers to memorandum or other members ofa company are the natural persons who are have been entitled to operate the functions of thecompany. It is important to note that all the functions and operations are carried out in thename of the enterprise and hence, it is said to exist as an artificial person with its ownidentity. In consequence to the same every corporate is entitle to sue or be sued in the court oflaw. The concept of legal personality was accepted by English Law which is essence createsseparate legal rights and duties of a corporate. In the case of Mach Marketing InternationalSA v. MacColl (1995) it was opined by the court that incorporation marks the birth of anartificial person and has no existence before acquiring the certificate of incorporation. Thestate of maturity is attained only at this stage and all the functions can be undertaken in thename of company (Ireland, 2010). Moreover, this distinct legal personality of a corporate alsoempowers an enterprise to enter into contractual or other legal relations, own and acquireproperties and so on. This legal principle is supported from the legal provision of Section 74of Insolvency Act which clearly states that registration and the consequent incorporation of acorporate in the nature of limited liability protect the members from being imposed with
Law of Business Enterprises Assignment_3

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