COMPANY CASE STUDY ABOUT SHELL

Company Case study about Shell

Company Case study about Shell

Introduction

Limited liabilities are sometimes considered to be a less understood kind of a term which are discussed in a very comprehensive amanner in this paper along with the description of varios aspects related to it.

Limited Liability

The existence of the limited liability is not something which is something by chance. This particular was invented for the sake of facilitating the trade in order to fulfill commercial needs. Till the nineteenth century, the companies have authority to call on their members for making contributions. The creditors may also file a lawsuit if there is any sort of indirect recovery from the members of companies, this can be done by making a request to the court for issuance of any particular and order forcing the company to increase levitation (Burns and Baron, 1998).

Limited liabilities are the natural derivative of corporate personality and is basically giving a meaning that the company is like separate entity which is responsible for paying all of its debts and all the liabilities as well, this means that all of its liability are unlimited. On the other hand, liability for the shareholders are limited for the unpaid amount of FV (face value) their shares have and in a case when they have paid the shares completely, they do not own any further liability. This proves that in case something goes wrong with company, the shareholders have to only bear the loss of their shares and nothing else will be loose. Several liability as an antonym to the limited liability and it means that liability bear by each shareholder is unlimited and each shareholder is responsible personally for all liabilities the company is having and also all personal assets are liable of being sold for paying the ...