Corporate Governance 2
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The Company as a legal Entity
- The company is created by a legal process as a legal entity separate
from the people associated with it;
- Owners or members have limited liability and are liable only for the
amount of equity capital that they have agreed to subscribe;
- The company has many of the rights of a legal person - to buy and sell,
to own assets, to incur debts, to employ, to contract and to sue and
be sued;
- The company has a life of its own, but no guaranteed immortality;
- The company exists separately from the life of its owners;
- Owners can actually transfer their shares to others but in unlisted
companies, the directors may have the power to refuse the transfer of shares;
- The company must obey the law.
