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Company Law and Industrial Relations Notes

Institution: College

Course: Company Law and Industrial Relations

Content Category: Tutorials

Posted By: PENTAMRK

Document Type: DOCX

Number of Pages: 65

Price: KES 200
 
    

Views: 846     Downloads: 3

Summary

TOPIC 7: COMPANY LAW AND INDUSTRIAL RELATIONS
What Is a Company?
A company is a legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.
The line of business the company is in will generally determine which business structure it chooses such as a partnership, proprietorship, or corporation. These structures also denote the ownership structure of the company.
Company formation
Company formation is the process of registering a business as a limited company at Companies House. As a result, the business becomes a distinct legal entity. The process is also referred to as ‘company incorporation’ and ‘company registration’.
When you incorporate a limited company, it becomes an individual ‘person’ in the eyes of the law. Incorporated businesses are completely separate from their owners in terms of finances, liabilities, contractual agreements, and ownership of property and assets. Such a view is not afforded to unincorporated businesses like sole traders as distinct legal entities.
The law does not view unincorporated businesses like sole traders as distinct legal entities. Therefore, there is no separation between a sole trader business and its owner in terms of finances, assets and liability.
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