Which of the following is an effect of a company's separate legal personality?
A、Members and directors of a company are protected from the force of the law
B、The company is liable for its own debts
C、Members have no liability in the event of the company being insolvent
A、Members and directors of a company are protected from the force of the law
B、The company is liable for its own debts
C、Members have no liability in the event of the company being insolvent
【参考答案及解析】
Separate legal personality means that the company is responsible for its own debts. Members and directors are not protected from the force of the law because the veil of incorporation can be lifted. Members are liable up to the amount they have contributed in share capital if the company is insolvent.
Separate legal personality means that the company is responsible for its own debts. Members and directors are not protected from the force of the law because the veil of incorporation can be lifted. Members are liable up to the amount they have contributed in share capital if the company is insolvent.