Thanks for that John.
On Mar 24, 2:48 pm, "Westland Law" <[email protected]> wrote:
> I would say the best approach is to set out as many of the consequences as
> you can think of and then identify in simple terms what are the effects.
>
> So legal actions might be along the lines:
>
> Legal actions
> Once formed the company has the ability to sue and be sued in its own name.
> There are two sides to this: one is that the company alone is the proper
> plaintiff for wrongs done to the company. This is the rule in Foss v
> Harbottle. The other side is that the proper defendant for wrongs done by
> the company is the company. A director or member should not in general terms
> be liable for the wrongs of the company (although of course there are
> circumstances in which each may be liable. For instance, directors may be
> liable for reckless or fraudulent trading; members may be liable to
> contribute to the debts of the company in the amount of the unpaid share
> capital in a winding up).
>
> The advantage for the corporators is that they ought not generally be liable
> for the debts of the company. This allows an element of entrepreneurial risk
> without personal liability: of course this is not available to partners in a
> partnership or sole traders.
>
> John Freeman
>
> Westland Law
>
> www.lawgrinds.ie
>
>
>
> -----Original Message-----
> From: [email protected]
>
> [mailto:[email protected]] On Behalf Of tiger
> Sent: 24 March 2009 14:25
> To: FE-1 Study Group
> Subject: Company law - Consequences of Incorporation
>
> Hi all
>
> Just wondering if anyone else is confused about the questions on
> consequences of incorporation. In the examiner's reports, answers
> discussing separate legal personality in too much detail were
> criticised.
>
> I do not have much in my notes on the other consequences- limited
> liability, transferability of shares, perpetual succession, large
> membership, taxation, legal actions and statutory obligations. I would
> only be able to write one line or two for each of them. Anyone else
> finding the same problem?
>
> Thanks- Hide quoted text -
>
> - Show quoted text -
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