Legal person is a company, which owes a separate property from it`s shareholders.
The company shall be liable for its obligations with the whole of its property. The company shall not be liable for the obligations of its shareholders and vice versa - shareholders shall not be liable for the obligations of the company.
Legal person by law
An organization or a group of people who have (some of) the legal rights and responsibilities of an individual under the law.
Legal person theory
A legal person is separate and distinct in law from its members and from their number or changeover. It is an independent legal entity and is in principle protected by basic rights. Its particular name is also protected by law against unauthorized use by third parties. It has the capacity to act and can thus acquire rights and create obligations with binding effect. It does this through its organs, which in the sphere of private-law labor relations are, depending on the form of company, the shareholders' meeting or company general meeting, the supervisory board, the management board or a managing director. It is recognized in case law that a legal person is liable for unlawful conduct on the part of its organs and must pay damages where appropriate.
This page was last modified on 06 May 2014 at 12:39.
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Author: Artis Zelmenis