- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
Trading without a certificate of incorporation? None if you are a private individual or a partnership
Trading without a trading certificate? None if you are a private individual, a partnership or a private company
Does that answer it for you?
If you are registered as a public company but you have not yet received a trading certificate and yet you commence trading, the contracts into which you enter are voidable at the option of the other party. That is, you are not able to enforce the contract against the other party, but they ARE able to enforce it against you.
Where you have entered into a contract without a trading certificate and you are now being asked to settle the resulting obligation, if you fail to pay within 3 weeks, the directors become personally liable to settle the company’s debt (it’s an example of lifting the veil)
Ok?
- You must be logged in to reply to this topic.