Corporation Company Limited by shares

In this forum we will give laws, details, discussion, rulings, Act and much more about the liabilities, duties of the partners in the partnership business, formation and dissolution of the partnership.

Corporation Company Limited by shares

Unread postby Admin » Sat Aug 04, 2012 10:07 am

Corporation Company Limited by shares

A corporation being an artificial person created by law there are limitations to its capacity to enter into a contract. It can only contract through its authorized agents and if there are any formalities necessary. they must be strictly followed. the other limitations is that if can enter into such contracts only as are permitted by the terms and its incorporation. a limited company incorporated under the company acts cannot employ its funds and capitals for the purposes of any transaction which do not come within the objects specified in its memorandum and purposes contrary to or inconsistent with its memorandum of association are ultra vires the company. Apart from this rule there is no prohibition express or otherwise to the right of company to enter into partnership with any other person or comply. it would appear therefore that a company may enter into such partnership if such authority is clearly and expressly conferred it by its articles.
Iqbal International Law Services®
Phone: 0333-2171556
Site Admin
Posts: 463
Joined: Tue May 22, 2012 7:28 pm
Location: Karachi, Pakistan

Return to Partnership Law

Who is online

Users browsing this forum: No registered users and 1 guest