Podcast
Questions and Answers
What happens to the subscribers to the memorandum of association upon registration of the company?
What happens to the subscribers to the memorandum of association upon registration of the company?
- They become employees of the company
- They are no longer associated with the company
- They lose their status as subscribers
- They become the first members (shareholders) of a body corporate (correct)
What is the inevitable consequence of the incorporation of a company?
What is the inevitable consequence of the incorporation of a company?
- Shared legal responsibility
- Loss of legal status
- Separate legal personality (correct)
- No change in legal status
What does the incorporation of a company create?
What does the incorporation of a company create?
- A partnership
- A sole proprietorship
- A new and separate legal entity (correct)
- An unincorporated association
What does 'piercing the corporate veil' refer to?
What does 'piercing the corporate veil' refer to?
What is the legal consequence of the incorporation of a company?
What is the legal consequence of the incorporation of a company?
Flashcards
Company Registration Effect
Company Registration Effect
Subscribers to the memorandum of association become the company's initial members (shareholders).
Incorporation Consequence
Incorporation Consequence
A company's incorporation creates a separate legal entity.
Piercing the Corporate Veil
Piercing the Corporate Veil
Ignoring the company's separate legal status and making its members legally responsible.
Company Incorporation Effect
Company Incorporation Effect
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Separate Legal Personality
Separate Legal Personality
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