Company law Essay Example | Topics and Well Written Essays - 4500 words

Company law - strive ExampleIt must be emphasized that the Partnership is nonhing but a collection of individuals and not a separate entity in itself. As such, there is no concept of limited indebtedness. All the partners be jointly and severally liable for the debts of the business. This means that the creditors of the business can not only seize the assets which were entrap into the Business by the partners, but similarly to the personal assets of the partners. So for example if your Business defaults on the give that you intend to take out from Credit Crunch Bank, then not only pass on the 10,000 direct in by each partner be liable for forfeiture, but the personal assets of the partners will also be up for grabs. To emphasize the point, under a partnership there is no dividing line among the Business and the Partners themselves.A private telephoner limited by shares is different. Here a company will be incorporated having separate legal personality and the Business will be carried out by this company. In the eyes of the law, the company is a separate person just like all you and your blighter colleagues are different people. Any debts of the company will remain its own and will not electric current over to the stockholders. Similarly, any assets contributed to the company will belong to the company and will no longer be a part of the shareholders estate.The main duty of the shareholder is to contribute to the value of the share. at one time this is done, there is no further liability on the shareholder. Even if the company later faces debts, the personal assets of the shareholder are safe. The concepts of separate legal personality and limited liability come together to ensure that the liability of the shareholder is limited to any amounts unpaid on the price of the shares and nothing else. So if, as before, the company defaulted on the Credit Crunch Bank loan, then only the assets of the business such as the ten thousand each contributed as ca pital by you and your colleagues would