Advantages of an artificial person over unincorporated person transferable shares;
Shares are generally transferable property which can be transferred to other persons subject to any restrictions that may be imposed by the articles of association.
- Limited liability; This means that the subscribers or members are liable to contribute to the assets of the company in the event of it being wound up only to the extent of the amount unpaid on their shares or guarantee given.
- Perpetual succession; The life of the artificial person is not affected by the death or insolvency of the members or directors.
- Common seal; It cannot sign documents therefore it acquires the use of common seal through which it executes its documents.
- Legal personality: an artificial person has legal personality of its own distinct from that of its members. The individual member has rights and liabilities of their own apart from those of the corporation.
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