CORPORATE PERSONALITY

Corporate Personality



Corporate Personality

Introduction

Corporate personality refers to the fact that as far as the law is concerned a company really exists. As a result of this a company can sue and be sued in its own name, hold property under its own name and most importantly be liable for its own debts.

Company law in the UK evolved significantly over the past 40 years. UK harmonization include protection of shareholders and third parties, the formation of public limited liability companies and the maintenance and changes in companies' capital, takeover bids, branch disclosure, mergers and divisions, minimum requirements for single-member private limited-liability shareholders' rights and related areas such as financial reporting.

The main objective of this paper is to discuss on the concept of corporate personality in light of corporate law.

Discussion

The man, and only man, is a natural legal personality. Other creatures are not recognized legal personality, and even inanimate objects are not a legal entity. Corporations and its various types, is an artificial legal entity, distinct, usually, the people that make this corporation. Artificial legal personality allows you to connect humans to act as one, without having to work with each and every one of these workers.

There is a legal personality right of property and the right to sign contracts, to sue and be sued for trial. Not all the rights of a person are vested to artificial legal personality - that includes no right to vote and the right to marry, for example, different countries differ in the ability of artificial legal personality pass for a criminal offense. When legal personality commits an offense legal authorities can impose a fine, but the penalty sentence will be imposed only on a person, not an artificial legal personality (Hallis, 1930).

Wherever a man - even in the sense of persons, whether corporate or not a corporation, at the same time, the only person (including some humans) can file a claim in small claims court, but the corporation is not entitled to do so. This difference is not significant, but procedural - a corporation wishing to make a claim, do so at another court.

It is also determined that the right to property is given to all legal personalities, and not just individuals. This is because of some reasons. Firstly, the legal entity behind all endeavours is a man. Secondly, the right to form unions - that is a constitutional right - would be drained of any real content, if the corporation which rises not enjoy constitutional rights. Finally, legal activity using non-humans is not possible in our society. If this was so, a strike would carry forth in the modern society without them. Further, this is cause for prevention of human rights and as such these entities would severely damage the fabric of modern life (Machen, 1911).

The law defines the company as a legal personality with powers to do business activities, while limited its actions, it must be consistent with the character and nature. Lifetime of the company is determined from incorporation until its ...