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Company Law (Example)

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Name Professor Couse Date Company Law Introduction Thomas is a small entrepreneur who owned a successful business of growing and selling vegetables. At one time he saw a prospectus company called Agrifriend which specialized in the commercialization of organic products. The Director of Agrifriend mentioned in the prospectus that the corporation anticipated generating considerable profits within its first two years of operation. Thomas approached the representative of the company because of its prospectus and thus decided to buy the whole franchise. However within the first year of operation the company made massive losses. This business made Thomas sells his other businesses and formed the company "Thomas and Co." in which he was the sole director and the majority shareholder. The rest of the shares came from his family members. The creditors now accord Thomas with the sole liability. In the meantime Thomas promised to sell to Mike but after losses made by the enterprise. The Veil of Incorporation could be penetrated as the conduct of the owner has a direct influence on the business. Additionally because he is the majority shareholder of the company he would face liability in this case and should complete the transaction. This case would imply that Thomas would receive compensation for the business losses but would need to sell his land as he bore the knowledge of the operation which is not separate from the company. For future cases Thomas should consider making more references before purchasing a business. References Law Teacher (2014 January 5) Salomon v. A Salomon Co Ltd Retrieved from www.lawteacher.net A (2013 August 15) Lifting the Corporate Veil Retrieved from www.legalserviceindia.com Co. (2017 June 20) Jones v. Lipman and another CHD Retrieved from swarb.co.uk Co (2015 June 16) Williams and Another v. Natural Life Health Foods Retrieved from http://swarb.co.uk/williams-and-another-v-natural-life-health-foods-ltd-and-another-hl-30-apr-1998/ [...]

Order Description:

Based on william vs natural light health food Veil Of incorporation should be included with reference from salomon vs salomon 2) selling of the plot of land with reference to Jones vs Lipman

Subject Area: Law

Document Type: Paraphrasing

This project has already been completed by one of the Studybay experts. The client rated this project:

Project's rating is 5/5

Price $35

Words 1375

Pages 5

Completed in 3 days

Expert Kelly E

Client Review

Recommended! looking forward to work again!!!

Positive
09.22.2017

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