This question deals with Scottish Company Law.
2006-10-30 03:13:30 · 5 answers · asked by blahblah 3 in Business & Finance ➔ Corporations
Not sure about Scotland, but in the U.S. it means that a corporation is it's own legal entity, like a person. When a person owns a business, that person is liable for all of that business's debts. If the business is a corporation, the owner is only responsible to the extent that he/she has contributed to the business. In other words, if a corporation has huge debt and goes bankrupt, debtors cannot come after the stockholder's personal possessions to pay the debt.
2006-10-30 03:26:51 · answer #1 · answered by professortig 2 · 0⤊ 0⤋
Separate Legal Persona means the entity is a separate and distinct lawful entity, an unnatural person in a sense versus a natural person aka as a human being. This website discusses corporate structures in the offshore realm: http://www.panamalaw.org
2006-11-01 13:07:26 · answer #2 · answered by panama7777777 2 · 0⤊ 0⤋
A separate legal persona means that the company, in itself, is a legal entity that can enter into contracts. It also offers protection for the directors. If the company (as a legal entity) gets sued, or becomes insolvent, then it is only the assets of the company that are at risk, and not the directors personally.
2006-10-30 11:28:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I don't know about Scottish Company Law, but in the USA, it means that, although, the Corporation can be sued, the individual owners and stock owners cannot be sued for the debt of the Corporation.
2006-10-30 11:27:25 · answer #4 · answered by bettyswestbrook 4 · 0⤊ 0⤋
I presume it means that you have limited liability and therefore only going to lose your stake in the business -as the business and you have 2 different identities in the eyes of the law.
2006-10-31 14:39:48 · answer #5 · answered by harry 1 · 0⤊ 0⤋