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Features of a Company (Separate legal personality (Concept was established…
Features of a Company
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Confidentiality
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It is usual that only shareholders of private company are a matter of public knowledge in offshore centres, however the use of nominee shareholders means this can remain confidential
Veil of incorporation: Refers to the separation of the legal personality of the company from that of its owners and controllers
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Court will hold the directors liable for company's debts if they are found guilty of fraudulent trading (ie carrying on a business with the intent to defraud creditors) or wrongful trading (where the director should have known the company would go into insolvent liquidation but failed to to take reasonable steps to minimise potential losses)
Perpetual Succession
Companies continue to exist until they are wound up by a legal process ie dissolution or struck from companies register
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A company comes into existence when it is incorporated by law by an association of people for business or profit-making purposes
Subject to their own articles of association which set out the way in which the company will operate
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