Business Law “The doctrine laid down in Salomon v Salomon & Co Ltd [1897] AC 22 has to be watched very carefully. It has often been supposed to cast a veil on the personality of a limited company through which the courts cannot see. But that is not true. The courts can‚ and often do‚ draw aside the veil. They can‚ and often do‚ pull off the mark. They look to see what really lies behind” - Lord Denning in Littlewoods Mail Order Stores v Inland revenue Commissioners [1969] 3 All ER 422.
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reduces your chance to commit an error when the time comes that you will be paying your debt. Now you do not have to pay multiple creditors at different times each month and this great reduces your chance of missing a payment. Debt consolidation also enables you to get rid of annoying collection calls. Usually‚ when a person is late with his or her payment‚ creditors often let a collection agency handle the case. And that is how you get multiple collection calls daily. These calls can be quite
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The word ‘equity’ can be seen to have a wide range of meanings- to many it is a synonym for ‘fairness’ or justice’. Those within the legal community recognise equity as the body of rules developed and applied by the Court of Chancery; a court previously presided over by the Lord Chancellor with rules developed under his authority. The law of equity developed due to the inflexibility of the common law. Before the development of equity‚ The law was rigid (which was often cited as a weakness) for example
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traditional capital structure studies that ignore debt heterogeneity miss substantial capital structure variation. Relative to high credit quality firms‚ low credit quality firms are more likely to have a multi-tiered capital structure consisting of both secured bank debt with tight covenants and subordinated non-bank debt with loose covenants. We discuss the extent to which these findings are consistent with existing theoretical models of debt structure in which firms simultaneously use multiple debt types
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identity of the company. Salomon v A Salomon & Co Ltd [1897] AC 22 is a landmark UK company law case. The effect of the Lords’ unanimous ruling was to uphold firmly the rule of corporate personality‚ as set out in the Companies Act 1862‚ so that creditors of an insolvent company could not sue the company’s shareholders to pay up outstanding debts. Mr Salomon had a boot manufacturing business which he decided to incorporate into a private limited company. His sons wanted to become business partners
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areas of focus considered. S213(e) - Inability to pay debts The grounds upon which a creditor can petition for winding-up of a company are set out in S.213 c – f. However for a creditor to be able to present a petition‚ he must have a present liquidated debt due and owing to him‚ and the debt must be owed to the creditor himself. S213(e) is as Samuel points out the ground that most petitions of creditors are based. Section 213 of the CA 1963 is a discretionary provision and even though a person
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was stood at 0.84. This is predominantly due to the situation that the company has high current liabilities compared to current asset. The company recorded high current liabilities because they have substantial amount in trade creditor and bank borrowing accounts. Trade creditor recorded at RM
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restructuring * Costs of foregone investment opportunities: firms in distress are often unable to finance new investments even though they may be profitable for its owners * Costs of conflicts between creditors and shareholders: serving the interests of the shareholders will results in creditors raising cost of borrowing * Firms are more likely to fall into financial distress if they have high business risks‚ and intangible assets * As the firm becomes more highly leveraged‚ the costs of
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Business law encompasses the law governing contracts‚ sales‚ commercial paper‚ agency and employment law‚ business organizations‚ property‚ and bailments. Other popular areas include insurance‚ wills and estate planning‚ and consumer and creditor protection. Business law may include issues such as starting‚ selling ‚or buying a small business‚ managing a business‚ dealing with employees‚ or dealing with contracts‚ among others. (Business Law & Legal Definations ‚ 2013) Commercial Law A
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Sole Proprietor (Pg 50 3-120) Individual Person Partnership (Pg 50 3-130) • Association of people (2 or more‚ not more than 20‚ except law & accounting firms) (CA 2001 Section 115‚ Pg 668) • Carrying on a business with a common view to profit Other Forms of Business (Pg 52‚ 3-140 3-160) Joint Ventures • Contractual agreement to conduct a particular venture or related ventures • Not a separate legal entity • Assets & obligations of the venture are the venturers personally • Parties not conducting
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