COMPANY LAW

1. legal person in law

2. WHO IS A PERSON IN THE EYES OF LAW?
Natural Person
A human being as
distinguished from a
person created by
operation of law
Legal Person
A body of persons or an
entity considered as
having many of the
rights and
responsibilities of a
natural person
including the capacity
to sue and be sued
May own property
under its name

3. COMPANY
1
• Artificial person created by the law / a type of
“corporation”
2
• Exists independently from its members
3
• Its function includes to hold property, carry on business or
other activity as an entity separate from the participants
(investors/managers) in that business/activity
4
• Comes into existence through process of
incorporation

4. OTHER ORGANISATIONS
Business Organisations
Sole-proprietorship
Partnership
Unincorporated joint
venture
Non-business Associations
Unincorporated
associations
Co-operatives

5. SOLE PROPRIETORSHIP
Individual person carries on a business in
his own name
No separation between the business and
personal assets or obligations
Sole proprietor signs all the contracts
relating to the business
Owns its assets and is personally liable
for all its debts
Income generated by the business is the
income of the proprietor

6. GENERAL PARTNERSHIP
An association of
people carrying own
business in common
with a view to a
profit
Relationship
between partners
and partners, and
partners and third
parties is governed
by the Partnership
Act 1961
No requirement to
take any formal legal
steps to create
partnership
Not a separate legal
entity
Individual partners
must own assets of
and incur the
obligations relating
to the partnership’s
business personally
and in their own
names

7. UNINCORPORATED JOINT VENTURE

8. UNINCORPORATED ASSOCIATIONS
Exception: Societies Act 1966 & Trade Unions Act 1959 allow
registered society and registered trade union to sue and be sued,
respectively, through a registered public officer or its registered
name
Formed to carry on various
activities and usually do not aim
to make a profit and distribute
among its members
e.g. clubs and
societies
(include trade
union)
Not a separate
legal entity
A registered society is allowed to
hold real estate while a trade
union must vests its properties
with trustee
Hence, cannot
hold property
in its name
Cannot sue and
be sued &
unable to
enter into a
contract

9. CO-OPERATIVES
It is a legal entity owned
and democratically
controlled by the
members
Members have close
association with the co-
operative
Once registered, it is a body
corporate and have power
to hold property, to enter
into contracts and to sue
and be sued

10. HOW DOES THE STATUS OF EACH
PERSON/ENTITY AFFECTS THE
PREPARATION OF LOAN
DOCUMENTS?

11. IDENTIFY THE CATEGORY OF THE
BORROWER/CUSTOMER
WHETHER THE BORROWER/CUSTOMER IS
REGISTERED UNDER ANY APPLICABLE ACT
COMPLIANCE OF APPLICABLE ACT IN RESPECT OF,
AMONGTS OTHERS, THE EXECUTION OF THE
SECURITY DOCUMENTS, THE POWERS OF THE
BORROWER/CUSTOMER
TAKE NOTE ON THE SECURITY TAKEN BY THE BANK
TO SECURE THE LOAN/BANKING FACILITY

12. Q&A SESSION
&
THANK YOU