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Law of Business Association

In: Business and Management

Submitted By wuttd101
Words 1019
Pages 5
LST2LBA: Law of Business Association
Semester 3- 2012

Student’s Name: Wu Tingting
Student’s ID: wuttd101
QUESTION 1
Legal Issue:
1. Whether Toan has eligible to bid at this auction
2. At this auction. Toan represent company or individual
3. whether Toan has breach of the government’s policy and laws containing that policy
Relevant Rules of Law
No matter how many shareholder exist in a company, there is a Under S119 separate legal entity between the company and its member. Like the case Saloman v Saloman& Co Ltd.
Under S119 a company comes into existence as a body corporate at the beginning of the day on which it is registered with the name specified in its certificate of registration.
Under S124 a company has the legal capacity and power of an individual both in and outside this jurisdiction.
Four consequences from separate legal entity
1. there is a distinction between private and company debt.
2. there is a distinction between private and company assets.
3. a company can contract with its member.
4 a company can be liable in tort to a member.

A company is recognised as a separate legal entity, it is possible for the ,members of a compang to enjoy limited liability. Put anotherway- the doctrine of separate legal entity. The liabili belong to the company and in a limited liaility company, the members’ liability is limited to the amount unpaid on the shares or the amount of the guarantee given by the member
Application of law to the facts
In this case, even though Toan and his wife are the sole shareholders of the company, and they are its sole directors, the company was a separate legal and it, not Toan and his wife, was running the business , so the successful bidder by the company.
Conclusion
Under S119 and S124, separate legal entity ,Toan the action will be successful.

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