It was not nor could it successfully be argued that it was a matter of course

It was not nor could it successfully be argued that

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It was not, nor could it successfully be argued, that it was a matter of course for any individual members of a corporation thus to assume to themselves the right of suing in the name of the corporation. In law, the corporation and the aggregate members of the corporation are not the same thing for purposes like this. In Macaura v Northern Assurance Co [1925] AC 619 , M did business as a timber merchant and insured the properties of the business against fire. He later incorporated a company in which he had a majority shareholding and transferred the business to it. He did not, however, transfer the insurance policy to the new company. The properties of the company were destroyed by fire and M sought to recover the losses from the insurance company. It was held that M could not recover the losses since the property covered by the insurance policy did not belong to him. It now belonged to the company which was not the policy holder. Download free eBooks at Click on the ad to read more American online LIGS University enroll by September 30th, 2014 and save up to 16% on the tuition! pay in 10 installments / 2 years Interactive Online education visit to find out more! is currently enrolling in the Interactive Online BBA, MBA, MSc, DBA and PhD programs: Note: LIGS University is not accredited by any nationally recognized accrediting agency listed by the US Secretary of Education. More info here.
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BUSINESS ORGANISATIONS AND AGENCY 368 CORPORATE PERSONALITY 20.3.3 THE COMPANY WOULD BE LIABLE FOR ITS DEBTS AND WRONGDOINGS A company does its own business and is liable for all liabilities arising therefrom and in the course of it, whether in contract, tort, or otherwise. Unless a company has been incorporated with unlimited liability, its members (unless they have personally guaranteed its debts) would enjoy freedom from the liabilities incurred by the company except to the extent of any monies outstanding on the nominal value of their shares or guarantee. Even so, these monies are debts to the company rather than the company’s creditors. If a company commits a crime or civil wrong, the proper person to sue would be the company itself, rather than its members or directors. Williams v Natural Life Health Foods [1998] 1 WLR 830 – The second defendant had founded the first defendant company relying on the experience he gained from working in the health foods department of Sainsbury’s Supermarket. The plaintiff entered into a franchise with the first defendant company to market its health foods. In doing this, it relied on the experience of the second defendant as contained in the company’s brochure. However all negotiations and discussions were held with the company’s representative at the company’s office. At no time was there any communication between the plaintiff and the second defendant.
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  • Fall '19
  • Corporation, Managing Partner

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