Associatio Theory Of Legal Personality

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DEFINITION OF LEGAL PERSON
Jurists have defined legal persons in different ways,
The German jurist Zitelmana considers “will” as the essence of the legal personality to quote him “personality is the legal capacity of will, the bodylines of men for their personality a wholly irrelevant attribute”.
Salmond defines a person as “any being to whom the law regards as capable of rights and duties. Any being that is so capable is a person whether human being or not and nothing that is not so capable is a person even though he be a man” [1]. Therefore persons in juristic terms are of two kinds: natural and legal. The former are human beings while the latter may be real or imaginary, in whom law vests rights and imposes duties and thus attributes personality by way of fiction.
THE CONCEPT OF SEPARATE LEGAL ENTITY
The principal effects of the formation of a company are twofold. First, its shareholders, and their transferees, become members of an
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Fiction theory: This theory is mainly propounded by Savigny, Salmond, Kelson and Holland. According to this theory a corporation is clothed with a legal personality. The personality of a corporation is different from its members. Savigny regarded corporations as an exclusive creation of law having no existence apart from its individual members who form the corporate group and whose acts by fiction are attributed to the corporate entity.
Salmond also supports the view that a corporation has a fictitious existence. It is distinct from its members and capable of surviving even after all the members have ceased to exist.[6] The fiction theory thus believes that incorporation is a fictitious extension of personality resorted to for the purpose of facilitating dealings with property owned by a large body of natural persons. The fiction theory, however, answer satisfactorily the civil and criminal liability of

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