South African Legislation Quizzes
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Questions and Answers

What is the central attribute of entities with juristic personality?

  • They have unlimited liability.
  • They are separate and distinct from the holders of the entity’s equity. (correct)
  • They are fully liable for any losses.
  • They are not distinct from the shareholders.

    • Which statement about limited liability is TRUE?

  • Shareholders can claim personal assets of the company.
  • Shareholders are liable for any liabilities or obligations of the company.
  • Shareholders' liability is limited to their investment in shares. (correct)
  • Shareholders have unlimited liability.

    • What does s19(2) state about incorporators, shareholders, or directors of a company?

  • They are solely responsible for all company liabilities.
  • They can claim personal assets of the company.
  • They have unlimited liability for company obligations.
  • They are not liable for any company liabilities or obligations. (correct)

    • What is the consequence of separate legal personality regarding employees in a company?

    <p>Employees are distinct from shareholders in legal terms.</p> Signup and view all the answers

    Which legislation is mentioned in relation to entities with juristic personality?

    <p>Companies Act</p> Signup and view all the answers

    What happens if an individual puts R20,000 in shares in a company with limited liability?

    <p>They risk losing only the R20,000 invested in shares.</p> Signup and view all the answers

    What is a common misconception about the definition of a company?

    <p>Companies always focus on profit.</p> Signup and view all the answers

    According to Cilliers & Benade, what aspect receives little emphasis in the definition of a company?

    <p>Juristic personality</p> Signup and view all the answers

    What distinguishes a 'juristic person' from other entities?

    <p>Independence from its members and ability to hold rights and obligations</p> Signup and view all the answers

    What does the term 'company' generally refer to under the Companies Act?

    <p>Only entities incorporated under the Companies Act</p> Signup and view all the answers

    In what instances would a company be considered an 'existing company' under the Companies Act?

    <p>Upon deregistration and re-registration under the current Act</p> Signup and view all the answers

    What is the primary characteristic of a juristic person?

    <p>Ability to exist independently with its own rights and obligations</p> Signup and view all the answers

    What is the legal term for the ability of legal subjects to be active and have legal consequences?

    <p>Capacity to act</p> Signup and view all the answers

    What kind of legal persons are recognized?

    <p>Natural persons only</p> Signup and view all the answers

    Which statement is true regarding a company as a juristic person?

    <p>A company can sue and be sued in its own name.</p> Signup and view all the answers

    What happens to a company from the time its incorporation is registered?

    <p>It gains all the legal powers and capacity of an individual.</p> Signup and view all the answers

    What type of personality does a company possess according to the text?

    <p>Juristic personality</p> Signup and view all the answers

    In what ways is a juristic person like an individual?

    <p>It can acquire assets and conclude contracts independently.</p> Signup and view all the answers

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