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Incorporation
Incorporation is the act of selling out shares of a company to generate revenue. Questions about incorporating, companies that are or will incorporate, or companies that are already incorporated can be asked here.
1,040 Questions
What are the advantages and disadvantages of multinational corporation in the Philippines?
Some of the effects of multinational corporations entering the Philippines market include competition and the need to alter prices. The new corporations also provide more chances of employment for the qualified locals.
What are facts about cases of Gilford Motor Co Ltd v Horne?
Corporations law case concerning separate legal identity and penetrating the corporate veil under the exception of 'using the company as a vehicle for fraud.
The principle refers to use of the company by its controllers in an attempt to avoid an existing legal duty that otherwise falls on the controller personally. Where this occurs, courts will refuse to treat the company as having taken on the legal duty in place of the controller. This principle is illustrated in Gilford Motors v Horne:
FACTS: Horne was managing director of Gilford Motors; his appointment was subject to a written agreement stating that he would not solicit customers for his own purposes either while he was managing director or after he left. Horne subsequently left Gilford and started up his own company, supplying spare parts for Gilford cars at an undercutting price. Concerned that he may have been in breach of his agreement with Gilford he started a new company.
ISSUE: Gilford sued for breach of the employment contract, Horne argue that the company had a separate legal identity and the clause only bound him personally, but not the company-owing to the separate legal identity argument in Salomon.
DECISION: The English Court of Appeal was satisfied that the company was formed for the purpose of avoiding liability under the agreement, the court noting that while a company usually has its own separate legal identity, if the company "was formed as a device, a stratagem" to allow Horne to evade the conditions of the agreement.
NB all information taken from 'Corporate law'- Boros & Duns.
When starting a corporation people submit articles of incorporation?
The link below provides access to the Australian government's requirements for business registration and licences.
Difference between a limited company and a partnership?
- Business structures are easy to set up.
- Liability is shared equally among the business people.
- Partners and sole proprietors claim their business income and losses on their personal tax returns.
- Partnerships and sole proprietorship are legally dissolved and no longer exist if the individuals die.
Why are so many new businesses choosing a limited liability company form of ownership?
All businesses which are in the form of company or corporation having limited liability.
Limited liability means that if business become insolvent the creditors of business cannot claim the property of shareholders without their investment in the business to fulfill his damages.
What does the term limited liability mean in corporate context?
Yes you are correct. Limited means limited liability for the owners or principles of the company.
It does not however limit the liabilities of the company itself. only the principles personal assets are protected.
What are the differences between company and corporation and incorporation?
Thier is no difference between company, corporation and incorporation all are the same terms used for any legal entity in the eyes of law because company,corporation or incorporation are an artificial persons in the eyes of law. It has a separate existence from its owner. The assets of the company belongs to company not to its owners. You can use all the terms interchangeably.
You can study a book oo "Company Law" for your more information.
Thanks
Qaiss
The group of people who own a corporation?
The shareholders own a corporation. This can range from a single shareholder in a closely held corporation to hundreds of thousands of shareholders in a publicly traded company. Stockholders may be individuals or what are called "institutional investors," such as mutual funds, retirement plans and insurance companies.
There are a variety of types of shares that can be issued by a corporation, e.g., common and preferred, and within these shares there are different classes as well. Shares can be voting or non-voting, have dividends paid out to them or not. Although the rights attached to the shares may vary, all of the shares have one thing in common - they represent an ownership interest in the corporations.
The daily operations of the corporation are overseen by the board of directors but there must be an annual meeting of the shareholders to elect the board, and often to ratify the actions taken by the board on their behalf. At this meeting the shareholders also have the opportunity to question the board as well as having the financials presented and explained to them.
A corporation is owned by shareholders.
Differences between functions of the central bank and commercial bank?
central bank does not accept deposit from customers whiles commercial bank does.
central bank is responsible for issuing of currencies whiles commercial bank does not.
central bank is accountable to the government whiles commercial bank is accountable to the share holders.
central bank is not set up for profit but commercial bank is set up for profit.
central bank is governed by an act of parliament whiles commercial bank is set up by an incorporation.
central bank formulate monetary policies whiles commercial bank does not.
What are some examples of a multinational corporation?
Toyota, Honda, Budweiser, Kia, McDonalds,Pepsi,KFC,Adidas,Nike,Puma,Umbro,Nissan,Renault,Citroen,MR Bricolage
Which is an advantage of a limited partnership?
Liability Protection:
In general partnerships, each participant is personally responsible for the actions of the company. This includes debts, liabilities and the wrongful acts of other partners. One advantage of a limited liability partnership is the liability protection it affords.
Flexibility:
Liability partnerships offer participants flexibility in business ownership.
Can you sue another member of LLC?
There are certain circumstances in which the owner of an LLC could be sued. Some of the possible situations in which you could sue would be if the owner signed a personal guarantee of responsibility, if their direct action caused physical injury, if they didn't withhold employee taxes, or if they commit fraud. This is a complicated matter which should be referred to an attorney.
What is the difference between an industrial bank and a commercial bank?
An Industrial bank is a financial institute with a limited scope of services. These services consist of selling certificates that are labeled as investment shares and also accept customer deposits. These banks are also known as Morris Banks or Industrial Loan Companies. A commercial bank provides services such as accepting deposits, business loans and auto loans, mortgage lending, and investment products like savings accounts and certificates of deposit.
What is the meaning of state of incorporation?
Choosing what state to incorporate a business in is an important decision that can have a long reaching effect. It is best to consult an experienced attorney that can help discover what state would be the most advantageous to incorporate in based on current state law and the goals of the business.
Does llc have a period after it?
LLC stands for limited liability company. There is no hard and fast rule when it comes to placing a period after the letters LLC. You can put a period after each letter, after the last letter or you can opt to leave the period out. Each way is grammatically correct.
Natural rights built on the concept of "fundamental fairness" :)
this principle states that-
*any change in membership of a company does not anyway affect the status of the company,
*death,insolvency,insanity etc. of any member of a company does not affect the continuity of the company.thus the life of the company does not depend upon the life of its members.
*it shall continue forever irrespective of continuity of its members or directors.except in case of winding up or liquidation of a company.
What is the difference between winding up and dissolution of a company?
Dissolution is part of winding up the business affairs of a company; it means the assets are distributed and the board of directors ceases to exist. Winding up includes paying taxes, terminating contracts, etc., leading to the proper time and conditions for dissolution. Some states require a waiting period, and it may vary for different types of companies (profit, non-profit, etc).
What do you need to form a LLC?
Forming and operating an LLC or a corporation is a bit more complicated and than forming a partnership, but well worth the trouble for some small businesses. The main benefit of an LLC or a corporation is that these structures limit the owners' personal liability for business debts and court judgments against the business. What sets the corporation apart from all other types of businesses is that a corporation is an independent legal and tax entity, separate from the people who own, control and manage it. Because of this separate status, the owners of a corporation don't use their personal tax returns to pay tax on corporate profits -- the corporation itself pays these taxes. Owners pay personal income tax only on money they draw from the corporation in the form of salaries, bonuses, and the like. Like corporations, LLCs provide limited personal liability for business debts and claims. But when it comes to taxes, LLCs are more like partnerships: the owners of an LLC pay taxes on their shares of the business income on their personal tax returns. Corporations and LLCs make sense for business owners who either 1) run a risk of being sued by customers or of piling up a lot of business debts, or 2) have substantial personal assets they want to protect from business creditors. To learn more about forming an LLC or a corporation, see Nolo's articles on each topic at www.nolo.com
LLC stands for "limited liability company." The LLC is a relatively type of new business entity in the United States. Its owners have limited liability for the entity's debts and obligations, similar to the status of shareholders in a corporation, but its income and losses are normally passed through to the owners as if it were a partnership.
What does it mean to incorporate a company?
A company that has been incorporated means that it is now recognized by the state, in the US one of the 50 states, as an independent legal entity from its owners. This provides some legal protection for its owners.
