Chapter 29: Introduction To Property: Private Property And Fixtures
The Income Tax Act also acknowledges firm as a separate legal entity. A member cannot declare any ownership rights over the company both single-handedly or collectively. The properties of the corporate can only be used for the event, betterment, upkeep, and welfare of the company and can’t be used for private benefits of the shareholders. A company is perceived to be a distinct legal entity and one that does not rely upon its members. The money credited by the collectors of the corporate could be recovered solely from the corporate and the properties owned by the corporate. It has to behave by way of a board of shareholders elected or selected by the members of the corporate.
The members or shareholders don’t have any direct liability to the collectors or security holders of a limiteless company. The members don’t … Read More