The concept of guild is basically creating some opposite crack upd entity from individuals which run a business for its owners. However, the words bust court-ordered entity means that the union has the same rights as other individuals. It is regulated under CA s.119, which means a company could sue and be sued. Emphasizing on the concept of separate legal entity, there was a case named Saloman v Saloman & Co [1897] AC 22. In this case, Mr. Saloman held the majority of the shares in the company. In fact, he was also entitled with secured charge as a creditor. Therefore, when the company went bankcrupt, Mr. Saloman had the right to be paid first before the other unsecured creditors. However, the unsecured creditors felt uneasy and reported this as a fraud to the Court. The Court said this was not a fraud, since a company is a separate legal entity which could carry through task such as trade and debts incurring detached from its shareholders and directors. Another example could be taken from the case of Andar stockpile Pty Ltd v Brambles Ltd (2004) 206 ALR 387. In this case, Mr. yell as the owner of Andar sued Brambles for the flaw he suffered while doing his job under Brambles.
For information background, Andar was under a working contract with Brambles, so Andar carried business tasks fromdirectly from Brambles and obviously it was a laundry business. When Brambles sought consideration from the Court, the Court decides that Andar is the superstar who owed Mr. Wail a duty to provide safety during the work. Although Mr. Wail was the owner of Andar, Andar was held to be guilty towards its owner. The status of separate legal entity are clearly stated in the case that a company is a completely separate legal entity. In conclusion, under CA s.119, a company as a separate legal entity has the rights to perform business task, such as trade, loan, sue, and the others which are considered as necessary to do in a business separated from its shareholders and...If you want to get a integral essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment