Article Should Be Bound By An Outsiders Analysis

In other words when a person contracting with a company is presumed to know the provisions of the contents of the memorandum and articles, then he is entitled to assume that the provisions of the articles and entitled to assume that the officers of the company may have observed the provisions of the articles. It is no part of duty of any outsider to see that the company carries out its own internal regulations.

Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire structural organization of a company, its managerial system and eventually to the company's societal responsibility. A corporation is well organized with stipulated division of responsibilities among the arms of the organizational structure, shareholders, directors, managers and corporate officers. However, conflicts between managers in most firms and shareholders have brought about agency problems. Shares and their trade have seen many companies rise to big investments. Shareholders keep the companies running

The thesis deals with the above concepts and discusses how the Companies Act 71 of 2008 (the Act) modified the law, particularly, by extending the legal capacity of a company and extinguishing or modifying the above rules which had previously restricted a company's ability

This situation can lead to negative consequences for a business when its executives or management direct the organization to act in the best interest of themselves instead of the best interest of its owners or shareholders. Stockholders of the enterprise can keep this problem from arises by attempting to align the interest of management with that of themselves. This normally occurs through incentive pay, stock compensation, or other similar incentive packages that now cause the managers financial success to be tied to that of the company (Garcia, Rodriguez-Sanchez, & Fdez-Valdivia, 2015; Cui, Zhao, & Tang, 2007; Bruhl, 2003; Carols & Nicholas,

In addition, these entities are individualized and empowered to sue others and be sued in return. This makes it simple for citizens who have qualms with such corporations to seek the intervention of the law since they are treated as such entities under the law. As constitution directs the procedures and requirements for the formation of corporations, it similarly warns that failure to incorporate these conditions will make corporations non viable and their claims inadmissible in courts. Corporations are also limited by this article in their capacity to fund political actions and endeavors. Article 15 also addresses the same issue of corporations only its concern is on public service commissions. It is in this regard that this Article establishes the Arizona Corporation Commission (Arizona Corporation Commission, 2010). As entities formed with the sole purpose of offering necessary services to citizens, the commissions perform the role of regulating and providing public utilities. The constitution also indicates that these corporations are under state regulation which aids in creating accountability and effective operations in these bodies.

Constitutional provisions mandating general incorporation laws became widespread in the north in the 1840s and spread through the rest of the country in the 1870s, one of the most famous general incorporation laws, the New York Free Banking law of 1838. The New York case provides a fascinating example of how states solved the problem of corruption and corporations. General incorporation laws made corporate charters available to everyone who met minimum requirements through an administrative procedure. In contrast, special incorporation required an act of the state legislature. Special and general incorporation will be discussed in detail later. Special and general incorporation are representative of the more general process of special and general

United States v. Article consisting of 50,000 Cardboard Boxes More or Less, each containing one pair of Clacker balls. This ridiculous sounding case was not made up for a cartoon. It was real. This case was concerning the seizure of an asset through the use of civil forfeiture. Civil forfeiture is a legal procedure used by police to obtain assets. If during an examination the police have a “preponderance of evidence” then they are legally allowed to take asset that they deem to be suspect. This process is currently allowed in 49 states with Nebraska outlawing it during April of this year. Due to the nature of the seizure, the person who has had their assets seized does not technically even have to be charged with a crime before or after the seizure. Through a multitude of programs, police have seized over 2.5 billion in assets in 2014.

• a duty to act within powers, that is, to act in accordance with the company’s constitution

Regulation is an important way to enforce ethic and accountability of business. Through the unit, we can see there are some argument against regulatory. Under the free market approach, even without regulation there are private economic-based incentives for the business to provide credible info to outside parties, to avoid an increase in cost of operations. When there is a free market, the theory of market for managers and market for corporate takeovers assume managers’ previous performance will impact on how much remuneration they command in future, or whether they would be replaced by an existing management team, they will be encouraged to adopt strategies to maximise the value of their organization. The assumption is based on the agency theory, which focuses on the self-interest motivation. However, self-interest may create lots of issues as we discussed earlier, holds that regulation

During this 21st century, we find that almost every nation has companies set up and these institutions play a major role in the nation’s economy. We can find that new companies are being incorporated almost in a daily basis under the Companies Commission of Malaysia, in accordance with Companies Act 1965(The Act). However, we realised that the concept of separate legal entity derived its mere foundation from Salamon v. Salamon & Co Ltd which dates back to several centuries.

There is no clear framework of the rules that would cover the contingencies of a ruling to pierce the corporate veil Idoport Pty Ltd v National Australia Bank Ltd. The corporate Veil usually protects owners and shareholders from being held liable for corporate duties. Yet again a decision made by the court to lift that veil and would place the liability on shareholders, owners, administrators, executives and officers of the company without ownership interest. The purpose of this essay is to conduct an analysis on the concept of lifting the corporate veil and to review the different views on its fairness and equitability to present a better understanding of the notion, the methods used was throughout researching the numerous scholars views on the subject, case law and statutes examples, and the evidence provided by the empirical study of Ramsay & Noakes. When we discuss the lifting the corporate veil the first case that pops out is the case of Salomon V A. Salomon & Co Ltd, since the decisions of applying the corporate veil were first formed as a consequence of this case. The idea covers all of company law and distinguishes that a company is a separate legal entity from its members and directors. Furthermore, spencer (2012); have indicated that one of the core principles that followed the decision in Salomon v Salomon was the wide acceptance one man company’s. However In order to form a

Evaluation is an important process required to determine the reliability and validity of information from various sources, such as journals, text books, and web pages (http://www.lib.berkeley.edu). The article in question looks at “the impact of early dementia an outdoor life”. Bennet (2001) is the framework that will be used to help structure the evaluation of this article, as it should then give an indication if the information is clearly justified or not. The study was carried out by four researchers: who have clearly stated their educational and professional back round in biographical notes Duggan et al (2008). The aim of the study was to determine if it is beneficial to sufferers of dementia to venture outdoors on a regular

The 'veil of incorporation' can be described as being the separation between a company and its members. Due to the separate legal status of a company from its members this is usually very strictly maintained. However, there are certain circumstances when the courts will deny the people who run the company the advantage of hiding behind the corporate veil. In these instances the veil of incorporation is said to be 'pierced' or 'lifted', i.e. the barrier between a company and its members is removed so there is no legal separation between them.

The decision of Salomon v. Salomon which brought about the doctrine of separate legal personality is one which has evolved over time. Over a century and still counting, the principle illustrated in Salomon, courts have are still reluctant in placing limitations on corporate personality and rejecting other approaches which pose as a greater challenge to the doctrine . From time immemorial, judicial history, lawyers and judges have reiterated that the doctrine of corporation is an intangible legal entity, without the body and soul. In Athanasian terms, the orthodox doctrine of corporation as a legal person, separate and distinct from the personality of the members who compose it, has been defined and propagated .

(a) What are the effect of pre incorporation contrast according to common law and the Malaysian Companies Act 1950? Explain the cases relevant to the aforesaid matter.