Company Liability Clarifications

Summary

In corporate law, companies have distinct liabilities. Limited liability protects members from direct creditor claims, while unlimited companies do not. An incorporated company is both an artificial and legal person, capable of legal actions. In the Maldives, a public company requires at least seven members. The case of Foss v Harbottle established that only a company can sue for wrongs against it. Company dissolution typically occurs through liquidation, not due to director issues. Floating charges are relevant to companies, securing interests over changing assets. Understanding these principles is crucial for navigating corporate legalities.

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A company incorporated is a _________. a. natural person b. Both artificial and legal person c. Artificial person d. legal person
A company incorporated is a:
b. Both artificial and legal person
- An incorporated company is considered an artificial person created by law.
- It also has legal personhood, meaning it can enter contracts, sue, and be sued.
If you have any more questions or need further clarification, feel free to ask!
In the Maldives how many members are required to form a public company as per Companies Act *? a. * or more b. * or more c. * to * d. * to *
In the Maldives, as per the Companies Act *, the required number of members to form a public company is:
b. * or more
Is there anything else you need help with?
Which of the following is not relevant about the case Re Neol Tedman Holdings Pty Ltd, *? a. Separate personality means that the existence of a company does not depend on the existence of its members. b. Membership may change or members may die – the company continues in existence until wound up. c. If no direct beneficiary can be accredited the company steps into winding up in case of private limited companies. d. In case of death of the main directors and shareholders of a company, the personal representative of the deceased members should appoint directors, so that the new directors could assent the transfer of the shares to the beneficiary.
The statement that is not relevant about the case Re Neol Tedman Holdings Pty Ltd, * is:
c. If no direct beneficiary can be accredited the company steps into winding up in case of private limited companies.
Is there any specific area of law or additional questions you need help with?
Shares of a public company are _________. a. Transferable depending upon the type of company b. Transferable c. Non- transferable d. same as any other share in a partnership
Shares of a public company are:
b. Transferable
- Public company shares are typically freely transferable, allowing them to be bought and sold on the stock market.
Do you have any other legal questions or need clarification on something specific?
Which of the following types of company is not a practice in the Maldives as per the old Companies Act *? *. Royal Charted companies *. Statutory companies *. Registered / incorporated companies *. Companies limited by share *. Unlimited companies *. Public limited companies *. Private limited companies *. One person company a. *,* b. *,*,* c. *,*,* d. only *
The correct answer is:
b. *,*,*
- Royal Charted companies, Unlimited companies, and One person companies were not a practice in the Maldives as per the old Companies Act *.
Would you like to know more about company types or any other legal information?
“A breach of duty by the directors of the company was a wrong done to the company for which the company alone could sue. In other words, the proper plaintiff will be the company and not the individual shareholders.” The abovementioned judgement was given in the case __________. a. Foss v Harbottle (*) * ER * b. CCSU (Council for civil services union) v Minister for the Civil Service [*] AC * (HL) c. Re Neol Tedman Holdings Pty Ltd, * Re Neol Tedman Holdings Pty Ltd, * Re Neol Tedman Holdings Pty Ltd, * d. Wheeler v Leicester City Council [*] AC * (HL)
The correct answer is:
a. Foss v Harbottle (*) * ER *
This landmark case established the principle that only the company itself, not its individual shareholders, can sue for wrongs done to the company.
Do you have any other legal questions or need further information?
Which of the following will put an end too the existence of a company? a. Bankruptcy of efficacious *% of the executive members b. None of the given options are applicable. None of the given options are applicable. None of the given options are applicable. None of the given options are applicable. None of the given options are applicable. None of the given options are applicable. None of the given options are applicable. None of the given options are applicable. None of the given options are applicable. c. Death of director d. Insanity of the director
In the Maldives, the existence of a company can be put to an end mainly through liquidation or winding up, which includes:
- Voluntary liquidation by the shareholders.
- Compulsory liquidation by a court order.
- Failure to comply with statutory requirements.
Do you have any specific questions about the winding-up process or need further details on company dissolution?
Which of the following will put an end too the existence of a company? a. Bankruptcy of efficacious *% of the executive members b. None of the given options are applicable. c. Death of director d. Insanity of the director
The correct answer is:
b. None of the given options are applicable.
In the Maldives, the existence of a company typically ends through:
- Voluntary liquidation by the shareholders.
- Compulsory liquidation by a court order.
- Failure to comply with statutory requirements.
Would you like more information on company liquidation or any other aspect of corporate law?
Floating charge is a practice most relevant to_________. a. Company b. Partnership c. Sole Proprietorship d. NPOs
Floating charge is a practice most relevant to:
a. Company
A floating charge is a security interest over a fund of changing assets (like stock or receivables) of a company that allows the company to use the assets in the ordinary course of business until an event of default occurs.
Do you have any specific questions about floating charges or other aspects of corporate law?