Three friends pooled their resources to form a company. After some time and while the company was running, differences arose among them. Each claimed ownership of the company.
Required:
Explain the concept of legal personality of a Company in the light of the above facts. (7 marks)
View Solution
Upon incorporation a company becomes a body corporate, separate and distinct legal identity from those who formed it. The company has the powers of a natural person and of full capacity. Those who pulled their resources to form the company become members of the company if they subscribe to the Regulations of the company. A member has the right to attend a general meeting of the company and to speak and vote on a resolution.
None therefore, can claim ownership.