LAW 122 Lecture Notes - Lecture 24: Legal Personality, Insite, Sole Proprietorship
Document Summary
E. g. , corporation (not shareholder) carries on business. E. g. , corporation owns the property (not shareholders) E. g. , corporation (not shareholder) incurs liabilities . What the shareholder actually owns: a bundle of rights. Shareholder can be employee or creditor of corporation. Shareholders taxed only when paid dividend corporation unaffected if shareholder dies. Case: limited liability (ethical perspective 21. 1) page 550. There are multiple taxi corporations, each owned 100% by carleton . Each corporation has 2 cabs which is covered by insurance. Taxi hits woman, and has damages worth more than 000 (which is the amount the insurance covers) However the corporation doesn"t have enough money to pay women even with the insurance and selling of assets can she sue carleton. No she can not, since the corporation has a separate legal identity from. This situation means that the woman will never get the money and ethically this is wrong.
