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Submitted By neyamul
Words 2896
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Name: Neyamul Hoque
ID:1020180530
Sec:8
LAW 200

Statement Analysis: “A company at law is distinct from its members. A Director is neither an agent nor a trustee of a company”

To: Barrister Shaheen Ahmed (ShD) Date: 07.04.2014

Introduction

The main inspiration for forming a corporation or company is the limited liability it offers to its shareholders. This policy allows the shareholders to lose only what he has contributed as shares to the corporate entity and nothing more. However, there is a major exception to the general concept of limited liability. There are certain circumstances in which courts will have to look through the corporation, that is, lift the veil of incorporation, and hold the shareholders of the company personally liable for the obligations of the corporation. The veil policy is raised when shareholders shape the distinction between the corporation andthe shareholders. It is an important aspect of the law that although it is a separate legal entity, a company or corporation can only act through human agents that it is comprised of.Under the company law or corporate law, a corporation is specifically referred to as a legal person who is a subject to rights and duties and is capable of owning real property, entering into contracts, and having the ability to sue and be sued in its own name. Also, if we want to state a corporation in different way then we can say that a corporation is a juristic person that in most cases is legally treated as a person, and empowered with the attributes to own its own property, execute contracts, as well as ability to sue and be sued.
Under the eye of law, there can be two types of person, (1)

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