MRL2601 - Entrepreneurial Law - Notes.

Principle – Company is a separate legal entity Forms of enterprises – 1. Sole proprietorship – capital on one person invested 2. partnership – 2 or more pool capital and abilities 3. CC – legal personality 4. Company – Legal personality 5. business trust The registration of a company or CC allows the body with separate legal personality with its own rights and liabilities The risk extends only to the loss of amount they contributed as capital CC and company enjoys the benefit of perpetual succession – change in membership does not stop their legal existence) Shareholders of the company do no usually participate directly in management of the enterprise Each member in CC is entitled to participate in the management and no provision is made for a board of directors. Benefit of incorporation – Public Company with Share Capital is the most efficient of mobilizing capital from the investing public. Private companies are aimed at smaller enterprises which do not rely on public funds.