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Describe the relationship between legal personality and contractual capacity.
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Both natural and juristic persons have legal personality, granting them the ability to enter into contracts and fulfill legal obligations.
How are summonses structured for legal proceedings against a sole proprietor?
Summonses must identify the business name, personal address, and state 'full and further particulars of the defendant are unknown to the plaintiff.'
What differentiates a 'disqualified' director from an 'ineligible' director in company law?
A 'disqualified' director lost eligibility due to certain actions, while an 'ineligible' director was never eligible, such as minors or mentally ill individuals.
What role does the business judgment rule play in protecting directors from personal liability?
The business judgment rule protects directors from personal liability when they act in good faith and make informed decisions in the company's interest.
How does a company acquire legal personality?
A company acquires legal personality through incorporation, becoming a juristic person with rights and duties.
What is the legal consequence of identifying 'Becky's Bunny Chow' in legal documents?
In legal documents, Becky's Bunny Chow is recognized as a sole proprietorship, and the owner, Becky Naidoo, is addressed with personal and business details for legal purposes.
What is the impact of insolvency on a director's eligibility?
Insolvency can lead to disqualification, revoking a director's eligibility to hold directorships due to financial irresponsibility.
Explain how 'piercing the corporate veil' impacts limited liability for directors.
Piercing the corporate veil negates the protection of limited liability, holding directors personally accountable when corporate separation is abused.
What conditions allow a court to 'pierce the corporate veil'?
The court can pierce the corporate veil if directors misuse company assets or act in bad faith, making them personally liable despite corporate protections.
Under what circumstances is a company legally required to appoint a company secretary?
Only public companies and state-owned enterprises (SOEs) are legally required to appoint a company secretary.
What is the legal significance of the term 'Law of Persons' in business law?
Law of Persons determines who or what is considered a person with contractual capacity, including natural and juristic persons.
Why is it important to read legal questions carefully before answering?
Careful reading helps avoid misinterpretation and ensures accurate application of legal principles to the given scenario.
Discuss the implications of a company having legal personality.
A company with legal personality can own property, enter contracts, sue or be sued, and bear legal obligations independently of its owners.
What distinctions exist between a 'company secretary' and an 'ordinary secretary'?
A company secretary acts as a chief administrative officer responsible for compliance and guidance, whereas an ordinary secretary handles routine office tasks.
What essential compliance duties are expected from a company secretary?
A company secretary ensures compliance with legal and regulatory requirements, advises directors, and oversees the submission of annual returns.
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