why a company is called an artificial person?
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Answered by
56
A company is an artificial legal person.
It is artificial
because it is created by a process
other than the natural birth. It comes
into existence through the operation of
law. It is a legal person because it
exists in the eyes of the law. It can do a
number of things which can be done by
a natural person g. a company can
enter into a contract, it can purchase
and sell assets, it can be fined, it can
file s s it, and so on. It acts through the
board of directors elected by the
members.
It is artificial
because it is created by a process
other than the natural birth. It comes
into existence through the operation of
law. It is a legal person because it
exists in the eyes of the law. It can do a
number of things which can be done by
a natural person g. a company can
enter into a contract, it can purchase
and sell assets, it can be fined, it can
file s s it, and so on. It acts through the
board of directors elected by the
members.
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Answered by
37
A company is an artificial person created by law
Abstract
The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. This means that a company is treated as a separate person from its participants. It is owned by at least one shareholder and managed by at least one director. This separate legal personality has the consequence that a company has perpetual succession. The life of the company is not affected by the death, disability, insolvency or disagreement of a shareholder. Its existence is ended when it is wound up pursuant to the Companies Acts.The shareholders may come or go the life of the company like an artificial person is least affected by these changes. The liability of the shareholders is limited to the value of the shares held by them, it means if a company fails to pay its obligations, the personal properties of the shareholders cannot be sold for the settlement of business debts. In this paper, I will analyse 6 key milestones in the historical development of the modern company. A result of this paper will show the advantage and disadvantage of the corporate structure during historical development.
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Abstract
The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. This means that a company is treated as a separate person from its participants. It is owned by at least one shareholder and managed by at least one director. This separate legal personality has the consequence that a company has perpetual succession. The life of the company is not affected by the death, disability, insolvency or disagreement of a shareholder. Its existence is ended when it is wound up pursuant to the Companies Acts.The shareholders may come or go the life of the company like an artificial person is least affected by these changes. The liability of the shareholders is limited to the value of the shares held by them, it means if a company fails to pay its obligations, the personal properties of the shareholders cannot be sold for the settlement of business debts. In this paper, I will analyse 6 key milestones in the historical development of the modern company. A result of this paper will show the advantage and disadvantage of the corporate structure during historical development.
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