Question
David has decided to incorporate his Mexican Restaurant business which he has run previously as sole trader. After careful consideration with you, he has set
David has decided to incorporate his Mexican Restaurant business which he has run previously as sole trader. After careful consideration with you, he has set up a limited liability company called Mexican Cantina Ltd in which he is the sole shareholder with 10,000 fully paid-up shares at $1 per share. He is also joint director of Mexican Cantina Ltd with his wife Claire.
- Explain the legal principle which limits the personal liability of Julian as a shareholder of Mexican Cantina Ltd. Which legal case established this legal principle?
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Business Law in Canada
Authors: Richard A. Yates, Teresa Bereznicki Korol, Trevor Clarke
11th Canadian edition
134312112, 133847136, 978-0134312118, 978-0133847130
