Extract: Section 15 of the Companies Act 1993 provides that a company is a legal entity in its own right, separate from its shareholders, and continues in existence until its removal from the New Zealand Register. Thus a company, once registered, is regarded as a legal person. This is an attribution by the law of fictitious personality to a group of persons providing a fund of capital. This fiction has considerable consequences for rights and duties. It serves a useful economic purpose of facilitating the pooling of investment capital but simplifies legal relations at the expense of common sense and social reality. This creates tensions which need from time to time to be resolved as a matter of justice.
|Title of host publication||Company and Securities Law in New Zealand|
|Editors||John Farrar, Lynne Taylor|
|Place of Publication||Wellington|
|Number of pages||19|
|Publication status||Published - 2008|