The company being an artificial person acts through its board of directors
the agreements on behalf of the company are entered by the board of directo
When is an agreement entered by the Board of directors not legally binding
the company
Answers
The company is an artificial legal person with its own property and have legal rights and liabilities as well as it can sue and be sued in its own name. The big idea of company law is separate personality as an artificial person. Therefore company itself is capable of owing property being a party to a contracts, and being a claimant or defendant in legal proceedings. As company has a legal separate entity and being an artificial person, the company is sufficient enough. However in order to prevent the abuse of company, the existing law are adequate enough, which are already discussed in this answer.
The company Act 1985 recognises a distinction between two different types of company: the private limited company (Ltd) and the public limited company (Plc). In United Kingdom (UK) most of the companies are private Ltd. The members of the every shareholder only liable for the amount unpaid on their shares and not for the debts of the company. Particularly the public companies are aimed at securing investment from the general public. The memorandum of a company must state it is public as with private companies the liabilities of members also limited. Incorporation of companies has been made readily available by parliament to those who wish to take advantage of artificial entities with separate legal entity.
A shareholder is a natural and legal person who invested capital in the company. The shareholder generally own right to vote and they can participate in the affairs of the company through the general meetings. Directors are the principle organ of the company. A company’s articles may sometimes require a director at first time. Particularly the directors also appointed by the general meeting by the shareholder. A company may have a wide range of interconnected relationships. They may connected by contract, by share ownership, or by interlocking directorships. Eisenberg identifies horizontal groups such as cross-ownership groups, which found in the Japanese traditional keiretsu is the most famous example. In this type of group there is a complex network of small cross shareholding.
The company with its unique nature facilitating investment, minimising risk, and providing a organisational structure the registered company seems to perform well. It is specially designed as a capital raising vehicle. The limited liability also helps to increase the commercial spirit of the directors. The company is designed to potentially have a large number of participant and also has a constitution (memorandum and articles of association.) outlining its basic organisational and power structure.
If a company needs a loan but a bank or other lender has some concern about the company’s ability then they can create a debenture, which secure the debt in two possible ways. First a fixed charge could be created conferring an interest in or over an asset of the company. On the other hand companies may not have fixed assets but because of the nature of their business they have valuable moveable assets. This brings second type of secured lending floating charge.
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Answer:
The company is an artificial legal person with its own property and have legal rights and liabilities as well as it can sue and be sued in its own name. The big idea of company law is separate personality as an artificial person. Therefore company itself is capable of owing property being a party to a contracts, and being a claimant or defendant in legal proceedings. As company has a legal separate entity and being an artificial person, the company is sufficient enough. However in order to prevent the abuse of company, the existing law are adequate enough, which are already discussed in this answer.
The company Act 1985 recognises a distinction between two different types of company: the private limited company (Ltd) and the public limited company (Plc). In United Kingdom (UK) most of the companies are private Ltd. The members of the every shareholder only liable for the amount unpaid on their shares and not for the debts of the company. Particularly the public companies are aimed at securing investment from the general public. The memorandum of a company must state it is public as with private companies the liabilities of members also limited. Incorporation of companies has been made readily available by parliament to those who wish to take advantage of artificial entities with separate legal entity.
Explanation: