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Chapter 7

Consequences of Incorporation

There are a number of consequences of being a separate legal entity:

Management is Co. is subject to
separate from Companies Act
ownership 2006

Co. has perpetual
succession –
irrespective of
shareholders Consequences of Co. enters into contract
in own name
being a separate
entity
Company owns its own
property

Co. liable for its own
debts. If a Co. fails, Can sue or be sued
liability of shareholders in its own name

is limited to:

any amount they have
amount unpaid on OR agreed to contribute (if
their share capital limited by guarantee)

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