| Commentary

15.1 Introduction

| Commentary

15 The disadvantages of separate legal personality

15.1 Introduction

There are generally considered to be three main disadvantages in operating a new business through a vehicle with separate legal personality:

  1. 15.1.1

        the cost and delay involved in formation;

  2. 15.1.2

        the ongoing cost of complying with statutory requirements; and

  3. 15.1.3

        lack of privacy in relation to the financial and other affairs of the business.

Each of these disadvantages is now considered in turn.

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial