Legal Personality

Flashcards covering key definitions and concepts related to Legal Personality.

Natural Persons

Human Beings

Legal Persons / Juristic Persons

An entity, such as a corporation, that is recognized as having legal personality, i.e. it is capable of enjoying and being subject to legal rights and duties.

Examples of Legal Persons

Companies, close corporations, universities, municipalities, cooperatives, churches etc.

How Legal Persons Are Established

Established by a specific Act of parliament, created by way of general legislation, or come into being by conduct

Specific Acts of Parliament

Acts/statutes that create specific legal entities with defined purposes and functions

General Legislation

Acts of Parliament to create various types of legal entities, such as companies and close corporations

Partnership

When an association of persons conducts its business with the intention of making a profit.

Perpetual Existence

The company continues to exist notwithstanding the change in membership

Separate Existence

Assets, Profits and Debts belong to the company and not to its members

Representatives

Members are not entitled to act on behalf of the company unless specifically authorised to do so

Disregard of the General Rule In Cases of Fraud

When fraudulent use is made of the corporate entity or the company AND used for dishonest or improper purpose the courts may disregard it separate legal existence and treat the member and the company as one.

Piercing Through Corporate Veil

Courts are willing to ignore the separate legal existence of the company

Companies Within a Group (Group Companies)

The holding company [parent] that exercises control over other companies [the subsidiaries]

Separate Legal Entity Of Group Companies

Each company has its own rights, liabilities, and assets regardless of its ownership.