BTC1110 Lecture Notes - Lecture 11: Fiduciary, Common Ownership, Profit Sharing
3 Aug 2018
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Chapter 17: law of business organisations lecture 11. Ease of formtion and dissolution, lawe start up and recurrent costs. Two or more people can combine their assets or abilities; easy to establish; beterr able to borrow than individuals; partners and owners control. Unlimited liability of partne of membership; limited life. Establishment costs; ownership and control separated; transperancy of public corp; management has obligations. Limited liabiity; easier to rasie capital; fliexible membership of public company; unlimited life. Fiduciary arrangement allowing third party or trustee to hold assets on behalf of beneficiary. Legal title (ownership) is with trustee but trustee must act for benefit or beneficiaries according to the trudst. Based on mutual trust, confidence of partners skill, knowledge and integrity. Created by agreement express or implied. Partnership act - has interstitial role: fills gaps in agreement. Capacity: corps act s 115 max number is 20, except where it is professional, minors and people with unsound minds has limited capacity.
