Powers, Business Law and Ethics


The ultra vires doctrine limits a company's powers to the attainment of the company's objects under its  memorandum of association. Partnerships are not  affected by the ultra vires doctrine and partners enjoy relative freedom to diversify the firm's  operations.

(i)      Termination

A member's death, bankruptcy or insanity does not terminate the Company's legal existence whereas a  partner's death, bankruptcy or insanity terminates the partnership unless the partnership agreement provides otherwise.

(j)      Borrowing Money

A company can borrow on the security of a "floating charge". A partnership cannot borrow on a "floating  charge".

(k)     Ownership of Property

A company's property does not belong to the shareholders, either individually or collectively. Consequently, a member cannot insure the property  since he has no insurable interest therein: Macaura v Northern Assurance Co (4). A firm's property is the property of the partners who can  therefore insure it and, in the case of cash, make  drawings from it.

Posted Date: 1/12/2013 2:14:11 AM | Location : United States

Related Discussions:- Powers, Assignment Help, Ask Question on Powers, Get Answer, Expert's Help, Powers Discussions

Write discussion on Powers
Your posts are moderated
Related Questions
In relation to the scenario below, discuss relevant ethical and legal issues that relate to decision making regarding treatment vs non-treatment.   Please note , you are

Q. Show the Cross agency actions ? As already described, the ASIC, ATO and FWO all have responsibilities in investigating and monitoring elements of phoenix activity. This mean

Complaints made against the auditors: These are the most simple principles that such have to be applied to cases of this description. I protest, however, against the notion

Non-accepting shareholders: Acceptance on the required scale must be obtained within a maximum of four months from the date of the offer.  The position then is that: (a) at

Writ System: Further a person intending to commence an action on common law had to acquire a 'writ' from the government department which was authorized to concern writs.  A wr

Forms of action: A minority of shareholders or an individual shareholder suing under one of the above exceptions may institute one of the following actions i) A personal ac

Mode of Reduction: S.68 (1) expressly states that a company may reduce its capital "in any way". There is therefore no statutorily prescribed mode of reduction and the actual

1. What is the difference between modifying a contract under common law and modifying a contract under the UCC? 2. What is a "waiver" and what are its implications? 3. What i

steeple analysis about setting up a buisiness

Meeting is Unnecessary - meetings and resolutions: The purpose of holding general meetings with all the formality which this entails is to give to each member the opportunity