assignment OMT340 (LAW)

A very direct consequence which arises with the concept of separate legal identity of a corporation is the misuse of it by people. In reality a company is nothing but an association of persons, who are its beneficiaries, governed by the

2. The written agreement between a corporation and its bondholders might contain a prohibition against paying dividends in excess of current earnings. This prohibition is an example of a(n):

Item 5.|  |MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES|  | |20|  |

a self-created association of peers, bound together by mutual interests, with identifiable leadership, well-developed lines of authority, along with other business features, who act together to attain a particular purpose or reasons, which usually include . . . criminal activity and control of a specific territory, facility or kind of enterprise.

b. Available-for-sale securities. Investments in debt securities that are classified as available for sale and equity securities

that a company is either directly or indirectly, in part or in whole owned by some or all of its

Investments (equity, loan and advances) accounted for by the equity method while the investee has the activities in progress necessary to commence its

2) “Section 16(b) seeks to prevent officers, directors, and 10-percent owners of public companies from

Class-Action Lawsuit: A lawsuit filed by one or several individuals on behalf of a larger group of persons, referred to as “the class.”

Liability is limited to one 's investment (i.e., in shares of stock)” (Seaquist, 2012, Ch. 28)

“The total equity investment (equity investments in a legal entity are interests that are required to be reported as equity in that entity’s financial statements) at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support provided by any parties, including equity holders.”

The Corporate personhood, a universal legal model, grants corporations genuine rights and responsibilities similar to those of individual citizens. This concept proved useful in American jurisprudence in that it simplified one’s interactions with huge conglomerates. Citing the Fourteenth Amendment of the constitution, the term corporate personhood served to consider corporations similar to individuals. In that vane, corporate entities like individuals could join contracts as a single unit, corporate entities like individuals could be named in civil lawsuits as a single group and corporate entities like individuals could make decisions that would hold the enterprise responsible as a single entity even though the decisions were

| financially assisting a person to acquire shares (or units of shares) in itself or a holding company

This is an organisation that are managed by the Government or Local Services. This includes;

The concept of a company being a separate legal entity is the most striking illustration in separating the company from its owners. A paramount principle of corporate law is that no shareholder or member of a company is made liable for the obligations incurred by such incorporations A company is different from its members in the eyes of law. In continuations to this the opposite also holds true in the sense that neither can the company be held liable for the acts of its members. It is a fundamental distinction that a company is distinct from its members.