partnership arises whenever two or more people co-own a business‚ and share in the profits and losses of the business. Each person contributes something to the business -- such as ideas‚ money‚ or property -- though management rights and personal liability will vary. In Pakistan the partnership firms are registered under the partnership act 1932 which defines the partnership as “The relation between persons who have agreed to share the profits of a business carried on by all or any of them acting
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1 Active & Intelligent Packaging 2013 Copyright © 2013 by Clear Seas Research/BNP Media. All rights reserved. Results of this study cannot be used in whole‚ or in part‚ for promotional literature or otherwise without the expressed written permission. ICS Carpet Cleaning Chemical Market Study Copyright © 2013 by Clear Seas Research/BNP Media. All rights reserved. Results of this study cannot be used in whole‚ or in part‚ for promotional literature or otherwise without the expressed
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is often paid by the company’s creditors. In most situations this is as is intended by the Companies Acts. Sometimes‚ however‚ the legislature and the courts have intervened where the Salomon principle had the potential to be abused or has unjust consequences. This is known as ‘lifting the veil of incorporation’. That is‚ the courts or the legislature have decided that in certain circumstances the company will not be treated as a separate legal entity. In this chapter we examine the situations where
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his businesses in a way to minimize his liability and risk. Unfortunately‚ Wally has caused an error which ended up destroying his client’s whole house. He admitted liability for this error through his corporation which was hired‚ Wally’s Electrical Services. His client had an insurer (BIC) which covered the damages‚ but they are now coming after Wally’s Electrical Services to recover the damages. Unfortunately for the insurer (BIC)‚ they has very limited assets‚ and do not own most of the equipment
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a leather merchant who converted his business into a Limited Company as Solomon & Co. limited (the ‘company’). The company so formed consisted on Solomon‚ his wife and five of his children as members. The company purchased the business of Solomon for £39‚000; the purchase consideration was paid in terms of £10‚000 debentures conferring a charge over the company’s assets‚ £20‚000 in fully paid‚ £1 share each and the balance in cash. The company in less than one year ran into difficulties and liquidation
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THE COMPANIIES ACT‚‚ 1956 THE COMPAN ES ACT 1956 01 Q. Define a Company. Explain the essential features of a Company. Section 3(1) of the Companies Act‚ 1956 defines a company as “An association of individuals form for some purpose and registered under the present Companies Act or an earlier Indian Companies Act.” The following are the essential features of a company 1) Separate Legal Entity - A company on registration has a separate identity of its own which is different and distinct from
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• JOINT STOCK COMPANY: A group of private investors who pool their money to support big projects. A joint-stock company is a business entity which is owned by shareholders. Each shareholder owns the portion of the company in proportion to his or her ownership of the company’s shares (certificates of ownership). This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others. Shareholders are able to transfer
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the corporate veil” and ignore this principle when fairness and justice demand so. A “company” is an organization that is registered under the companies Act 1965. The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. This means that a company is treated as a separate person from its participants. The fact that a company was a legal entity separate from its participants was established in Salomon V Salomon
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I needed to invest in a company of my choice. My last employer was a cleaning company and I approached my old employer with a proposition. I and another business partner that I convinced in investing with me would organize a joint-stock company. This was to be a private partnership‚ as well as a limited partnership. So I approached him with this idea and he agreed. So after several negotiations the other investor and I devoted the majority of shares to this company. We received a registrar
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is a limited partner‚ it must also comply with the Limited Partnership Act of 1907. 3. Normally there can be a minimum of two partners and a maximum of twenty partners. 4. Each partner (except for limited partners) must pay their share of any debts that the partnership could not pay. This can be said to be unlimited liability. 5. Partners who are not limited partners are known as general partners. Limited Partnership Limited partnerships are partnerships containing one or more limited partners
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