A COMPANY
A SOCIETY OR ASSOCIATION OF INDIVIDUAL WHO COME TOGETHER VOLUNTARILY WITH A COMMON SEAL , CONTRIBUTES MONEY FOR COMMERCIAL AND BUSINESS PURPOSES, AND SHARE THE PROFIT AND LOSS.
A COMPANY MUST BE REGISTERED UNDER THE COMPANIES ACTS 1956 AND IF NOT REGISTERD IS AN ILLEGAL ASSOCIATION. MINIMUM NUMBER IS 7 PEOPLE.
CHARACTERISTICS OF A COMPANY
IS A SEPARATE ENTITY FROM THE MEMERS WHO CONSTITUTE IT.
A COMPANY IS NOT AN AGENT OR TRUSTEE OF THE MEMBERS, BUT A MEMBER CAN ACT AS AN AGENT OR EMPLOYEE FOR THE COMPANY.
A COMPANY HAS A NATIONALITY AND A DOMICILE BEING AN ARTIFICIAL PERSON, AND CAN ONLY ACT THROUGH A PERSON
IS NOT A CITIZEN AND HAS NO FUNDALMENTAL RIGHTS UNDER THE CONSTITUTION.

IT CAN SUE AND BE SUED, CAN ENTER INTO CONTRACTS, CAN HAVE A BANK OPEN AND EXCERCISE ALL THE POWER INCIDENTAL TO THE ATTAINMENTS OF ITS OBJECTS GIVEN IN IT MEMORANDOM OF ASSOCIATION.

TYPES OF COMPANY
SOLE TRADER
PARTNERSHIP
LIMITED LIABILITY COMPANY (LLC)
PUBLIC LIMITED COMPANY (PLC)

ADVANTAGES AND DISAVANTAGES OF A COMPANY
ADVANTAGES
CORPORATES PERSONALITY
THE PRIMARY ADVANTAGE, FROM WHICH OTHER ADVANTAGES FLOW, IS THAT THE COMPANY ACQUIRES CORPORATE (OR SEPARATE, OR LEGAL) PERSONALITY. THIS MEANS THAT THE COMPANY IS REGARDED BY LAW AS A PERSON. WHEREAS HUMAN ARE CLASSED AS NATURAL PERSONS, THE COMPANY IS A LEGAL PERSON. LIMITED LIABILITY
AS THE COMPANY IS A SEPARATE ENTITY, IT FOLLOWS THAT THE MEMBERS ARE NOT LIABLE USUALLY FOR ITS DEBTS AND LIABILITIES –THE COMPANY ITSELF IS LIABLE. THE LIABILITY OF MEMBERS WILL ALSO BE LIMITED, UNLESS IT IS UNLIMITED COMPANY AND THE LIABILITY OF THE MEMBERS WILL ALSO BE UNLIMITED.

PERPETUAL SUCCESSION
COMPANY ARE NOT SUBJECT TO PHYSICAL WEAKNESSES THAT NATURAL PERSONS ARE SUBJECT TO. SHAREHOLDERS AND DIRECTORS CAN COME AND GO. SO THEY CAN CONTINUE FOR EVER AND CAN BE CENTURIES OLD.
CONTRACTUAL CAPACITY
AS THE COMPANY IS A PERSON, IT CAN ENTER INTO CONTRACTS WITH PERSONS BOTH INSIDE AND OUTSIDE THE COMPANY, AS THE FACT REMAIN ON THE BASES THAT THE COMPANY IS EMPLOYER AND YOU ARE THE EMPLOYEE.

OWNERSHIP OF ASSETS
THE ABILITY TO COMMENCE LEGAL PROCEEDINGS
TRANSFERABLE SHARES
FLOATING CHARGES- EASY TO BORROW MONEY
HUMAN RIGHTS- THE EUROPEAN CONVETION ON HUMAN RIGHTS PROTECT LEGAL PERSONS TOO.

DISAVANTAGES
INCREASED FORMALITY, REGULATION AND PUBLICITY
THIS EXTENDS BEYOND FORMATION, AND COMPLEX RULES CAN APPLY THROUGHOUT THE COMPANY’S EXISTENCE. LOST OF PRIVACY AS COMPANIES ARE REQUIRED TO MAKE CERTAIN INFORMATIO PUBLICLY THROUGHOUT THIER EXISTENCE. (ESPECIALLY THE RULES RELATING TO FINANCIAL DISCLOSURES IS PRICE THE COMPANY PAY FOR HAVING THE BENEFITS OF CORPORATE PERSONALITY AND OFFER OF MEMBERS LIMITED LIABILITY.

CIVIL LIABILITY - IDENTIFICATION THEORY CAN BE USE, ON THE BASES THAT THE KNOWLEDGE OF CERTAIN PERSONS WILL BE ATTRIBUTED TO THE COMPANY. (E G DIRECTORS, SENIOR OFFICERS OR DELEGATES MANAGERIAL FUNCTIONS).

CORPORATE PERSONALITY
STATUTE: AS IT IS GRANTED CORPORATE PERSONALITY BY STATUTE, IT FOLLOWS THAT STATUTE CAN BE SET ASIDE CORPORATE PERSONALITY AND IMPOSE LIABILITY ON THOSE BEHINDE THE VEIL. E G (NO TRADING CERTIFICATE)
COMMON LAW – CAN BUT IS NOT QUICK TO DO SO
(E G Gilford motors co v Horne [1933] Jones v Lipman [1962] where the company is used to perpetrate a fraud, or is a facade or a sham.
COMPANY TAX BURDEN IS HEAVY
LIABLE TO PAY TAX WITHOUT ANY MINIMUM TAXABLE LIMIT AS IS PRESCRIBED IN CASE OF REGISTERED FIRM.