3 Questions
At what point does a company become a separate legal entity?
When ASIC issue the certificate of incorporation
What action triggers a company to become a separate legal entity?
Issuing shares
When are the first directors of a company considered legally separate from the company?
When they consent to become directors
Study Notes
Company Formation and Legal Entity
- A company becomes a separate legal entity when it is incorporated, usually by registering with the relevant state or national authority.
- The action that triggers a company to become a separate legal entity is the filing of articles of incorporation or a similar document with the state authorities.
- The first directors of a company are considered legally separate from the company when they are formally appointed and the company is registered as a separate legal entity.
Test your knowledge on company incorporation with this quiz! Answer questions about the legal process, including when a company becomes a separate legal entity.
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