A legal entity is a company that has property (isolated) in its economic jurisdiction, operational management or ownership. Such an enterprise may, on its own behalf, conclude contracts and exercise various rights, as well as bear responsibility, acting in court as a plaintiff or a defendant.
A legal entity shall include the form of society in the presence of:
- unity or organizational order;
- isolation of property;
- the right to appear in court and in civil relations on one’s behalf;
- bear independent responsibility for property.
Legal entities have civil rights that are consistent with the goals recorded in their constituent documents. The legislation also establishes obligations that are directly related to the activities of a business entity. The possession of these legal capabilities is the legal capacity of the organization, which is able to be realized through its bodies. This tool of a business entity forms and expresses his will.
The bodies of a legal entity are called upon to manage its functioning. They are also a tool acting in the circulation of property on his behalf. Thus, their work is recognized as the action of a direct legal entity. Being a part of the organization itself, this legal instrument does not have independence. In this regard, he does not need to confirm his actions with a power of attorney.
The bodies of a legal entity may operate on the basis of the representation of one person. In its capacity may be the general director (director), as well as the president, chairman of the board and so on. In this case, this legal instrument is classified as sole.
The bodies of a legal entity also meet collegiate. This type of government is created in societies and partnerships, public organizations and cooperatives, unions and associations, that is, in corporate associations whose work is based on membership. The supreme body in such legal entities is the meeting of all its participants. Collegial decisions can also be made in various foundations, where trusteeship councils are created, as well as in scientific and educational institutions.
Sole bodies of a legal entity are appointed or elected by its founders. Participants in any society have the rights to create a collegial instrument (board or council). Sole management bodies of a legal entity are also elected by them.
Along with the emergence of legal capacity, the enterprise also has legal capacity. It means the obligation of a legal entity to be liable for property damage, if such was caused by its actions. It is likely that situations will arise when employees of the organization, in the performance of their labor duties, inflict material damage on someone. And in such cases, the legal entity has no right not to answer for their misconduct, as members of the labor collective fulfill his will.
The legal capacity and legal capacity of the newly formed organizations arises from the date when the registration body of legal entities takes the appropriate decision. The functions of this competent representative of the state include verifying compliance with all requirements that are mandatory for all newly formed business entities. After completing all the necessary documents, information about these organizations becomes publicly available due to the fact that they are entered in a special register, which is the same for all legal entities. A business entity may cease its activities by conducting a liquidation or reorganization procedure.