Company law Essay Example | Topics and Well Written Essays - 1500 words - 3

Comp either law - Essay ExampleThrough the sub judice frameworks, entrepreneurs who wish to run companies ar guided in matter pertaining to establishing and running the companies. The carcassation of a beau monde may be seen under the law as separate from the association of some wholenesss in that it can be held answerable under certain set to be distinct and thus be liable in civic responsibility in which the persons forming it fail to take responsibility. Whenever the persons forming a keep company fail to perform or deliver as expected in terms of responsibilities and tax conformation, a company stands as a effective person who can take limited liability and who can equally be held responsible under law. Furthermore, the existence of a company as a legal entity confers the company the power to form associations with other companies to form corporate whose responsibilities upon dissolution must be terminated through a security measures of dissolution in order to avoid fu ture responsibilities charged over it as a legal person. Under the UK law (CA 2006) provisions, companies are interpreted to be separate from their directors and shareholders and under very few circumstances are companies taken in a common sense with their controllers (Commune, 2006, p.3 Anon, nd, Para 1-4). Nevertheless, under certain conditions and provisions, the director or the persons running the company may be interpreted to be part and thus be held responsible for the case of debts and other liabilities. Such instances may be whenever the director(s) may owe the company on shares or in form of assets. Under such discussion, a company owns property and assets distinctly from the proprietors and as such, the directors and the shareholders have no, legal provision to take any property from the company even though they may be having a hundred percent shareholding capacity. This therefore implies that future management has power to sue any previous director under the circumstance s of mishandling the company though it belonged to them. On the other hand, the UK law as well as acknowledges that a company is wholly responsible for its liabilities and debts and under such, the directors or even shareholders have no responsibility to pay a companys debts (Masons, 2010, para 1-3). The legal framework of the United Kingdom acknowledges 3 types of companies two of which are private companies but limited by guarantees or by shares and then the macrocosm limited companies. This paper intends to substantiate the authenticity of the company being a distinct entity or a different person from the persons who form it under the law as provided for under the United Kingdom 2006 company law frameworks (Anon, nd, para 1-5). In understanding a company as a distinct person or entity within the countrys framework, we shall consider a number of case studies under which, a company is wholly held responsible to argue its way out in instances of legal procedures where the direct ors or shareholders are not held responsible for any eventuality. Case 1 Mr. Smith envisions and starts a company, which is limited by shares. withal registering it under his sole directorship, he equally decides to buy a share from the company worth one pound and does it by full payment and as such, his share becomes fully bought. The company records