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Jevin has operated a business as a sole trader for a number of years. Now, he is being advised by friends that he should consider registering as a company in order to gain the benefits of separate personality. He is unclear as to what is meant by this and seeks advice from you. In this context, explain to him:
(a) The meaning of the doctrine of separate legal personality and its likely consequences.
(b) The circumstances under which this doctrine will be ignored by the Courts.
(c) According to Section 21(4) of the Companies Act of 2001, companies can be classified in two broad categories. Differentiate between these categories.
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