18 Questions
What is the central attribute of entities with juristic personality?
They are separate and distinct from the holders of the entity’s equity.
Which statement about limited liability is TRUE?
Shareholders' liability is limited to their investment in shares.
What does s19(2) state about incorporators, shareholders, or directors of a company?
They are not liable for any company liabilities or obligations.
What is the consequence of separate legal personality regarding employees in a company?
Employees are distinct from shareholders in legal terms.
Which legislation is mentioned in relation to entities with juristic personality?
Companies Act
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.
What is a common misconception about the definition of a company?
Companies always focus on profit.
According to Cilliers & Benade, what aspect receives little emphasis in the definition of a company?
Juristic personality
What distinguishes a 'juristic person' from other entities?
Independence from its members and ability to hold rights and obligations
What does the term 'company' generally refer to under the Companies Act?
Only entities incorporated under the Companies Act
In what instances would a company be considered an 'existing company' under the Companies Act?
Upon deregistration and re-registration under the current Act
What is the primary characteristic of a juristic person?
Ability to exist independently with its own rights and obligations
What is the legal term for the ability of legal subjects to be active and have legal consequences?
Capacity to act
What kind of legal persons are recognized?
Natural persons only
Which statement is true regarding a company as a juristic person?
A company can sue and be sued in its own name.
What happens to a company from the time its incorporation is registered?
It gains all the legal powers and capacity of an individual.
What type of personality does a company possess according to the text?
Juristic personality
In what ways is a juristic person like an individual?
It can acquire assets and conclude contracts independently.
Test your knowledge of South African legislation with this quiz. The quiz covers provisions, directors, and other relevant laws such as the Companies Act, National Environmental Management Act, and Prevention of Organized Crime Act. Stay updated with Notesaver on social media for more study materials.
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