Business Law (company law) Essay Example | Topics and Well Written Essays - 2000 words

Business Law (company law) - Essay ExampleIn the take that partners or external third parties decide to file a lawsuit, in actual sense they would be suing only the company with the exclusion of investors/stockholders. They are not held unresistant for such matters as loans as sanitary as other debts owed by the company. In contrast to them, investors, general partners, and sole proprietors are considered to be liable for such business debts all through. Limited liability is fundamental in the exclusion of certain parties from be held liable for such liabilities.Limited liability companies have a lot of advantages that I would say, arguably, outweigh the disadvantages regarding the same. It is indeed advisable that Robert, Sarita, and Phillip to start convert their company IN THE EVENT into a check liability company. The single advantages of a limited liability company are as follows.The mere existence of a limited liability company provides for the limited liability security or protection to its own members or owners. This could be arguably the most imperative advantage of this form of company. They are basically not personally responsible for the companys business debts and liabilities. Creditors are legally crippled to pursue the personal assets (houses, savings, and etcetera) of the businesss stakeholders in order to earn back their business debts (Macintyre, 2010). This is in contrast to many other distinguish forms of business. The only liability that members have to bear is that for the amount that they are yet to pay on shares. In the event that things do go wrong, the only losses encountered by the members would be the value of shares as healthful as any loans made by the members to the company. However, there is an ambiguity. The protection of limited liability companies does not go as far as to cover frauds. In the unfortunate occasion that creditors incur losses via count on fraud, there is no limit to personal liability.A limited liabili ty company