What Is The Legality Of A Company?

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The incorporated enterprises are recognized as legal persons who mean that these enterprises have a persona that is separate from that of its owners. Essentially, the personality of an incorporated company ensures that its liabilities do not extend to its owners unless in instances recognized by law. The rule on the legal personality of a company was laid in Salmon v. Salmon Co. Ltd , an English case in which the court held that the assets of a company are separate from those of the owner. To date, the rule has applied across the world and has been utterly beneficial in modeling the current business environment. However, some contentions have emerged with regards to companies that operate at an international level. Known as multinational…show more content…
International law, at the face of the record, is set of rules that govern the interaction between internationally recognized territories, states, organizations and bodies. Multinational corporations ought to be recognized as international legal persons because they are subject to the set of laws that make international law. It is worth noting, however, that international law falls under two main categories known as the private and international law. All multinational companies are bound by the rules and regulations set by both private and public international laws. Therefore, a multinational company that agrees to be subjected to these laws ought to be granted the international legal personality. To justify this claim, Hansen argues that multinational companies such as Coca-Cola and DHL are international persons because they have agreed to be bound by the rules of international law. For example, these companies are expected to adhere to the international treaties touching on environmental preservation, climate change, and labor regulation. To this extent, it is important to note that Chetail & Martinus argue that a multinational company should be granted the international legal persona if it is willing to agree to the rights, duties, and responsibilities created on the international plane. However, it would be a flaw to recognize a company as an international legal person if it cannot enforce its rights under the law. In such a
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