This paper examines the type of corporation which meets James’s best

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This paper examines the type of corporation which meets James’s best interest. Abstract This paper examines the type of corporation which meets James’s best interest. A company can be set up with or without shares available to the public, divided into the public company which is expensive to obtain and maintain, and the private company which is appreciated by most businesses to begin with. Also, there are limited and unlimited companies. In addition, a company can be classified as limited by guarantee or limited by capital shares which are in most companies’ favour. These are governed in the main by the Companies Act 1985 and relevant case law. Introduction There are several types of company. The most common company is a limited company, the liability of the members being limited to the amount they have previously agreed. According to Denis Keenan (1996), a corporation is a succession or collection of persons having at law an existence, rights and duties, separate and distinct from those of the persons who are from time to time its members. This paper explains the reasons to form a company, and the reasons why a private company is more preferable than the public one, together with the discussion of the company limited by guarantee and unlimited company. Finally, the cases in Salomon v. Salomon Co. (1897) and Marcaura v Northern Assurance Co. Ltd help to evaluate the principle of personal succession which is the unique feature of being a company. Across the paper, James is given recommendations to the type of company which best suits his needs. a) Advantages of Incorporation Incorporating a company offers James many advantages, even if he is doing one-person business. Some of these advantages are: - Separate legal personality. A corporation is by law recognized as a separate legal person. Since a partner in a general partnership represents an agent of the business, when a change happens about partners, it in most times differentiates the partnership. On the other hand, a corporation is not dependent on the life of shareholders, directors, and officers, and will not be affected by changes in, deaths and retirement of its members since it is by law recognized as a separate ‘person’. Furthermore, the day-to-day business is running unaffected. As a separate person, a company can enter into transaction i... ... middle of paper ... ... states that a shareholder is permitted to change the contents of the article and memorandum by special resolutions. A quick company may be born and improved to best meet James’s needs. It should be mentioned that the company is better to be limited by a capital share, as the limited by guarantee is not very keen on the profit-generating process. Bibliographies Books Andrew Hicks & S.H.Goo (2001) Cases & Materials on Company Law (4th ed.). London, Blackstone Press Limited. Denis Keenan (1996) Smith & Keenan’s Company Law for Students (10th ed.). London, Pitman Publishing Geoffrey Morse (1999) Charlesworth &Morse Company Law (16th ed.) London: Sweet & Maxwell. Janet Dine (2001) Janet Dine Company Law (4th ed.). Palgrave Law Masters Paul L. Davies (2003) Gower and Davies Principles of Modern Company Law (7th ed.). London: Sweet & Maxwell. S. Kunalen & Susan Mckenzie (2001). Blackstone’s Law Questions & Answers- Company Law (2nd ed.). London, Blackstone Press Limited. Stephen Mayson, Dereck French & Christopher Ryan (2000) Mayson French & Ryan on Company Law (17th ed.). London: Blackstone Press Limited. Web materials www.businesslink.gov.uk

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