Liquidation is the process of closing a company and converting its assets into cash to pay off its debts. If there is any money left after paying the debts, it is distributed to the shareholders. Liquidation can occur due to the company’s inability to continue its business or when shareholders voluntarily decide to close it. … Read more
An agent is someone who works on behalf of another person, called the principal, to handle business or legal tasks. Normally, the agent is not personally responsible for the business because they act for the principal. Any agreements or actions by the agent are seen as the principal’s responsibility. There are some situations where an … Read more
A general meeting is a formal gathering of the shareholders or members of a company. It is held to discuss important matters about the company and to make key decisions. The meeting allows shareholders to stay informed, share their opinions, and vote on important issues. It is an important part of managing a company and … Read more
A sub-agent is a person appointed by an agent to perform tasks or assist in carrying out duties on behalf of the principal. The sub-agent works under the agent, but their actions still affect the principal. Provisions Related to a Sub-Agent 1. Appointment An agent can appoint a sub-agent only if: 2. Responsibility The agent … Read more
A company is an artificial person created by law. It has its own legal identity separate from its owners. This means it can buy property, sign contracts, sue or be sued, and do business like a person. However, unlike a real person, it exists only on paper and works through people like directors and employees. … Read more
AGENCY AND BUSINESS ORGANIZATION COMPREHENSIVE ANSWER QUESTIONS – [20 Marks] 1. [2021 Fall Q. No. 18a]:Read the case situation given below and answer the questions that follow: Dipen, a trader in pashmina shawls based in Kathmandu, contacted Pramod, his agent in Delhi, to find a party for the sale of 1000 pieces of Nepal-made shawls. … Read more