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Corporate Personality: Corporate Personality refers to the fact that As far as the law is concerned a company personality really exists Apart and different from its owners. As a result of this, a company can sue and be sued in its own name, Hold its own property and crucially be liable for its own debts. It is this concept that enables limited liability for shareholders As the debts belong to the legal entity of the company and Not to the shareholders in that company. http://vijayhighcourt1.blogspot.com/2008/09/doctrine-ofcorporate-personality.html
Limited Liability:
Limited liability is a concept whereby a person's financial liability is limited to a fixed sum, Most commonly the value of a person's investment in a company or partnership with limited liability. If a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors. A Shaeholder in a limited company is not personally liable for any of the debts of the company, Other than for the value of their investment in that company.
Over time the concept began to be applied to commercial ventures with a public interest element such as rail building ventures and colonial trading businesses.
The members liability was limited to the amount prescribed in the Companies Act i.e. the amount they invested. The decision also confirmed that the use of debentures instead of shares can further protect investors.