Legal monism

Classified in Law & Jurisprudence

Written at on English with a size of 10.41 KB.

Limited liability companies are owned by shareholdersThe owners have the benefit of limited liabilitywhich means that in the event of the company going bankrupt they would not lose more than the amount they had invested in the company In legal terms, there is divorce of ownership and controlsince the owners(shareholdersare treated as separate legal entities from those who control and run the businessHowever, a privatelimited compancannot sell shares to the general publicwhereas a public limitedcompancan raise finance in this way.

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