A Legal Entity with Rights of an Individual

Indian law defines two types of “legal persons”, human beings as well as certain non-human entities that are given the same legal personality as humans. Non-human entities that are granted the status of “legal person” by law “have related rights and duties; they can sue and be prosecuted, they can own and transfer property.” Because these non-human entities are “voiceless”, they are legally represented “by guardians and agents” to assert their legal rights and fulfill their legal duties and responsibilities. Specific non-human entities that receive the status of a “legal entity” include “company personality, communities, charity unions, etc.”, as well as fiduciary estates, deities, temples, churches, mosques, hospitals, universities, colleges, banks, railways, communities, and Gram Panchayats (village councils), rivers, all animals and birds. [22] Your personal liability in the lawsuit is limited to the amount of your 25% investment. Your partner assumes 75% of the responsibility in the lawsuit and can seize assets to pay for it. Or your partner may need to use personal funds to cover the costs of the lawsuit. Laws relating to professional organizations (e.g. Corporations, partnerships, limited liability companies, etc.), often use the term “legal entity,” so the laws apply to both individuals and non-human business entities. As a legal entity, the organization or individual has the capacity: A company organized into a separate legal entity is a capable structure: as a rule, a legal entity can sue and be sued, own property and enter into contracts. The doctrine has been attributed to Pope Innocent IV, who seems to have at least helped spread the idea of persona ficta, as it is called in Latin. In canon law, the teaching of the Persona Ficta allowed monasteries to have a legal existence separate from the monks, which simplified the difficulty of balancing the need for infrastructure for such groups, even if the monks took vows of personal poverty. Another effect of this was that a monastery could not be found guilty as a fictitious person because it had no soul, which helped protect the organization from non-contractual obligations to the surrounding communities. This effectively transferred this responsibility to the people acting within the organization, while protecting the structure itself, as individuals were considered mental and could therefore be negligent and excommunicated.

[18] However, since your business is a separate entity, it does not necessarily legally protect your personal property in the event of a lawsuit against your business. There are two types of companies that are separate entities, but not separate legal entities: a legal or artificial person (Latin: persona ficta; also a legal person) has a legal name and has certain rights, protections, privileges, responsibilities and responsibilities in law, similar to those of a natural person. The concept of legal entity is a fundamental legal fiction. It is relevant to the philosophy of law because it is essential for laws that affect a company (company law). Individual shareholders generally cannot sue for the withdrawal of a company`s rights; Only the board of directors has the right to assert the constitutional rights of a company before the courts. [7] However, only certain commercial structures are legally separated from personal property, notably: In Italy, trade unions have legal personality as defined in Article 39(4) of the Constitution: since legal personality is a prerequisite for legal capacity (the ability of any legal person to modify (enter, transfer, etc.) rights and obligations), it is a prerequisite for an international organization to have international treaties in its own name. The prevailing view from the 1920s to the 1980s, championed by philosopher John Dewey, asserted that such perspectives are often overgeneralizations and that the decision to grant corporate rights in a particular field should be determined by the resulting consequences. In the 1980s, there was an explosion of economic analysis, with a company often seen as a combination of contracts and as a sales representative that should act on behalf of its shareholders. If the company is legally liable for the damages, the repairs are limited to the company`s assets.

Officers and shareholders are protected from legal action. The only way to lift this protection is if they commit fraud. Ralph Nader, Phil Radford and others have argued that a strictly originalist philosophy should reject the doctrine of corporate personality under the Fourteenth Amendment. [19] Indeed, Chief Justice William Rehnquist has repeatedly criticized the Court`s invention of the constitutional “rights” of corporations, including in his dissenting opinion in First National Bank of Boston v. Bellotti; In Bellotti, however, Justice Rehnquist`s objections are based on his “views on the limited application of the First Amendment to states” rather than whether companies are considered “persons” under the Fourteenth Amendment. [20] Nevertheless, the judgments of these judges continued to uphold the assumption of the company`s personality, as did the Server Court, and Rehnquist J. himself ultimately supported the right of companies to pass elections (the majority opinion in Bellotti) in his dissenting opinion in McConnell v. FEC. According to the reasoning of Dartmouth College and other precedents (see §U.S. jurisprudence below), companies could exercise the rights of their shareholders, and those shareholders were entitled to some of the legal protection against arbitrary government actions. Their cause was strengthened by the passage of general founding laws in the states in the late 19th century, particularly in New Jersey and Delaware, which allowed anyone to form businesses without state subsidy or special approval, and thus without customary government-granted monopolies in charters granted by the crown or by legislature laws. See Delaware General Corporation Law.

In Santa Clara County v. Southern Pacific Railroad (1886), the Supreme Court ruled that the Fourteenth Amendment applied to businesses. Since then, the Court has repeatedly reaffirmed this protection. [Citation needed] [Chronological citation needed] Each legal entity receives a Legal Entity Identifier (LEI) – a 20-digit code that serves as a reference for connecting a company to financial information. DESPITE the globalized economic world in which we live, LEIs are still not fully standardized, as the laws and regulations that apply to legal entities vary greatly from jurisdiction to jurisdiction.