The Doctrine of Separate Legal Personality and It’s Significance in International Business
8 Pages Posted: 14 Mar 2023
Date Written: March 10, 2023
Essentially, the doctrine of separate legal personality assures that a company exists as a legal entity separate from its owners and shareholders. International businesses can take advantage of this principle by engaging in cross-border transactions, establishing subsidiaries, and entering into contracts in foreign jurisdictions. Under this doctrine, companies are provided with some legal protection, and their owners are shielded from personal liability for debts and obligations incurred by the company. Companies can take advantage of this to access new markets, lower their taxes, and take advantage of favorable business environments. Furthermore, the doctrine facilitates joint ventures and partnerships between companies from different countries, allowing them to share resources and risks.
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