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Does a separate legal personality apply to Unlimited Liability Companies? Also, can public companies be unlimited liability companies?
Hi, Mike. I was wondering how an unlimited liability company can be a separate legal entity? Isn’t the whole reason of it being separate is because of limiting the amount of liability the members incur? Also can you give me an example of what type of businesses form unlimited liability companies
‘Isn’t the whole reason of it being separate is because of limiting the amount of liability the members incur?’
Not necessarily! That’s certainly a BIG advantage of conducting business as a company but it’s not necessarily the ‘whole’ reason
‘Also can you give me an example of what type of businesses form unlimited liability companies’
I seem to recollect that I gave an example in lectures! However … in English law it is the case that a property cannot be registered in the names of more than 4 people. OK, Me, John, Ken, Tax tutor and Chris are in partnership and we decide to buy some property in England. Well, I certainly want my name on the ownership documents
But so does John
But so does Ken
But so does Tax tutor
And so does Chris
So what can we do?
Form an unlimited liability company and take shares in that company but buy the property in the company name
OK?
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