South African Legislation Quizzes

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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?

Employees are distinct from shareholders in legal terms. (D) Signup and view all the answers

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

Companies Act (C) Signup and view all the answers

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

They risk losing only the R20,000 invested in shares. (D) Signup and view all the answers

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

Companies always focus on profit. (B) Signup and view all the answers

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

Juristic personality (C) Signup and view all the answers

What distinguishes a 'juristic person' from other entities?

Independence from its members and ability to hold rights and obligations (D) Signup and view all the answers

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

Only entities incorporated under the Companies Act (C) Signup and view all the answers

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

Upon deregistration and re-registration under the current Act (B) Signup and view all the answers

What is the primary characteristic of a juristic person?

Ability to exist independently with its own rights and obligations (A) Signup and view all the answers

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

Capacity to act (C) Signup and view all the answers

What kind of legal persons are recognized?

Natural persons only (A) Signup and view all the answers

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

A company can sue and be sued in its own name. (C) Signup and view all the answers

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

It gains all the legal powers and capacity of an individual. (C) Signup and view all the answers

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

Juristic personality (D) Signup and view all the answers

In what ways is a juristic person like an individual?

It can acquire assets and conclude contracts independently. (A) Signup and view all the answers