Essay on Legal

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Write a 8 page essay on Legal.Their operations and business may be similar to that of companies, but the in-depth details differ with a great degree (Derek).The first regulation in the operation is the separation between the corporation and its owners. Unlike other forms of business operations, companies are separate legal entities from their owners (Franklin). The limited liability clause covers this. This entails the extent to which a person may be called upon to pay to the assets and liabilities of the company during winding up of the company operations. The clause stipulates that the owners of the business cannot be accountable for any action of the business. therefore, companies operate as legal persons. This means that they can litigate or be litigated in a court of law (Derek).During formation of companies, the law stipulates that the company should have a minimum of 2 members and a maximum of 50 members. The members of the company are the owners who contribute the start-up capital or share capital. Members do not own the company property individually or correctively. The members of the company have no duty in the daily operations of the company. The day-to-day operations of the company are overseen by the company’s board of directors. Once the company is incorporated, the ultra vires limits the company’s powers and prevents it from changing the objects under the memorandum (Franklin).Company law regulates the way a company chooses it business name. Businesses are mandated by law to select a name that does not contradicts its business or misleading as per to the business it operates in. The company’s name should not suggest illegitimacy or should not contain prohibited clauses. For instance, companies in the United States are not allowed to contain the word “Federal” in their company name (James &Thomas). Those wishing to start a company are required to check with the registrar of companies

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