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  • Effects of Incorporation

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    SITI MASITAH SAIDI
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    This document discusses several key effects of incorporating a business, including: 1) An incorporated business is treated as a separate legal entity from its owners and can sue and be sued in its own right. 2) An incorporated business can hold property and assets in its own name. 3) An incorporated business has perpetual succession, meaning it can operate indefinitely regardless of changes in ownership. 4) The owners of an incorporated business have limited liability, meaning they are not personally responsible for the debts and liabilities of the business.

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    EFFECTS OF INCORPORATION

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    This document discusses several key effects of incorporating a business, including: 1) An incorporated business is treated as a separate legal entity from its owners and can sue and be sued in its own right. 2) An incorporated business can hold property and assets in its own name. 3) An incorporated business has perpetual succession, meaning it can operate indefinitely regardless of changes in ownership. 4) The owners of an incorporated business have limited liability, meaning they are not personally responsible for the debts and liabilities of the business.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    13 views7 pages

    Effects of Incorporation

    Uploaded by

    SITI MASITAH SAIDI
    This document discusses several key effects of incorporating a business, including: 1) An incorporated business is treated as a separate legal entity from its owners and can sue and be sued in its own right. 2) An incorporated business can hold property and assets in its own name. 3) An incorporated business has perpetual succession, meaning it can operate indefinitely regardless of changes in ownership. 4) The owners of an incorporated business have limited liability, meaning they are not personally responsible for the debts and liabilities of the business.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 7

    EFFECTS OF

    INCORPORATIONS
    INTRO
    • Section 18/20/21

    • Body corporate/separate legal entity

    • Also known as the veil of incorporation

    • Case: Salomon v Salomon & co


    EFFECTS OF
    INCORPORATION
    RIGHT OF SUING AND BEING
    SUED
    • Who has the right of suing and being
    sued?

    • Why the company has so?

    • Case: Foss v Harbottle

    • Proper plaintiff rule


    POWER TO HOLD LAND
    • In what manner the company hold
    the property?

    • What types of property that the


    company can hold?

    • Case: Macaura v Northern Assurance


    Co Ltd
    HAVING PERPETUAL
    SUCCESSION
    • What is perpetual succession?

    • Why so?

    • Case: Re Noel Tedman Holding Ltd

    • Can a company be terminated?


    LIABILITY OF MEMBERS
    • Who is liable to the debts of the
    business?

    • What about the liability of the company?

    • Case:
    1) Re Application by Yee Yut Ee
    2) Aziz b Atan v Ladang Rengo Malay
    Estate Sdn Bhd

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