LEGAL AND REGULATORY FRAMEWORKA company as a legal entity which has a separate legal identity from its members and is normally formed to undertake commercial activities. A company is defined in different forms as: Sole traderPartnershipPublic companiesPrivate companiesLimited companiesAnd unlimited companiesThe Companies Act 1985-2006 is an act that establishes the responsibilities of companies, directors and secretary. The act applies only to companies incorporated under ithttp://en.wikipedia.org/wiki/Companies_Act_2006#ImplementationIn the Companies Act 1985-2006 a company is defined as having been registered under the Act and this Act. Once a company is registered and incorporated, the company and the individual are separate bodies. The last significant development in the history of companies was the decision of the House of Lords in Salomon v. Salomon & Co. in which the House of Lords confirmed the company's separate legal personality and that the company's liabilities were separate and distinct from those of its owners. A society has two separate identities like the following case which argues that they separate in terms of society and individual. http://en.wikipedia.org/wiki/Company_(law) Like the case of saloman v saloman & co where the House of Lords allowed Solomon not to pay debts with his personal money, which means he has obtained limited liability, in which case it was an advantage, for example if he had unlimited liability he would be responsible for his own debt and would have to pay with his own money. Different company forms have different rights and responsibilities, for example a sole trader would have a different legal structure than a limited company or a limited company. As a sole trader you are responsible for your assets debts and your business, as if you get into debt you will have to pay out of your own money, so basically a sole trader has unlimited liability. There is a limited company, this means that the companies finances are separate from the owners personal finance, so if the company goes into debt, the company will be liable and not the owners. A joint stock company or a (jsc) is basically a type of business partnership in which the capital is formed by individuals from a group of shareholders. In exchange they receive a receipt or certificate of ownership of the shares in exchange for a contribution, shareholders are free to transfer ownership interests at any time by selling their shares to others.