Scribd
Upload
10 views11 pages

Understanding Juristic Persons in Law

This document outlines aspects of commercial law, focusing on legal subjects, including natural and juristic persons. It discusses legal personality, the implications of corporate entities, and the concept of 'piercing the corporate veil' in cases of fraud or abuse. Additionally, it provides details on sole proprietorships and partnerships, including their legal personality, assets, and liabilities.

Uploaded by

mrmtboat1
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
10 views11 pages

Understanding Juristic Persons in Law

This document outlines aspects of commercial law, focusing on legal subjects, including natural and juristic persons. It discusses legal personality, the implications of corporate entities, and the concept of 'piercing the corporate veil' in cases of fraud or abuse. Additionally, it provides details on sole proprietorships and partnerships, including their legal personality, assets, and liabilities.

Uploaded by

mrmtboat1
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Aspects of commercial law – MODULE 8

MISS DEOKIRAM
LECTURER INFO:
Name: Ms. Nicole Deokiram
Email address: ndeokiram@[Link]
Contact number: 011 559 4752
Consulting hours: see SG

PRESCRIBED READING:
• Corporate law for commercial students – Adriaan Haupt,
Nkhangweni Jerry Malange – Van Schaik Publishers. First Edition
2010 [chap 1, 2, 3, 4,9, 26] – available at library.

INTRODUCTION 2
PART 1

3
THE LAW?
Determines the rights and duties of persons also known as legal subjects.

LEGAL SUBJECTS
NATURAL PERSONS JURISTIC/LEGAL PERSONS
Individuals e.g. companies, close corporations, partnerships,
trust, sole proprietorship, non-profit
organisations, universities, churches

4
LEGAL PERSONALITY

• Natural persons and juristic persons has legal personality – person


that has rights and responsibilities.

• Consequences of legal personality for juristic/legal persons-


1. own estate?
2. Assets?
3. Liabilities - legal person over indebted?
Creditor cannot demand payment from member of legal person.

5
Salomon v Salomon 1897 AC 22 (HL)

GENERAL RULE

CORPORATE ENTITY IS DISTINCT FROM ITS MEMBERS FORMING IT.


ASSETS AND LIABILITIES ARE IT’S OWN
LEGAL PERSONALITY?
6
Salomon v Salomon 1897 AC 22 (HL)
UNLESS:
FRAUD
ABUSING LEGAL PERSONALITY OF ENTITY

THEN:
• CORPORATE ENTITY AND MEMBERS FORMING IT ARE ONE.
• PERSONAL LIABILITY ??
• Courts will ignore the separate legal personality of the entity.

“PIERCING THE CORPORATE VEIL/LIFTING OF THE CORPORATE VEIL”

7
JURISTIC PERSONS

SOLE PARTNERSHIP CLOSE COMPANY


PROPRIETORSHIP CORPORATION

8
JURISTIC PERSONS – SOLE PROPRIETORSHIP
DESCRIPTION LEGAL ASSETS LIABILITY
PERSONALITY
• One person ?? ?? If sole
owns and proprietorship
manages the becomes
business bankrupt??
• Owner
provides start
up capital

9
JURISTIC PERSONS – PARTNERSHIP
DESCRIPTION LEGAL ASSETS LIABILITY
PERSONALITY
• Consists of 2-20 ?? ?? If partnership
persons called becomes
partners bankrupt??
• Partners
manages the
business
• Partners provide
capital
• Partners shares
in profits

10
JURISTIC PERSONS – PARTNERSHIP

Remedies/Claims against partners:


• Actio pro socio - remedy used by partner against another to claim
specific performance or obtain an interdict.
• Actio communi dividundo - remedy used to divide assets of
partnership which are jointly owned by partners.

11

You might also like