Law
Legal person
11 April, 2012
Legal person

 

Judge  Lasha  Kalandadze  is today answering our questions on the facets, features, and specificities of legal persons in civil law.

 

 

NBR – Legal Person is a very popular term in a lawyer’s profession and in everyday life. Could you please explain its meaning in simple words?

L.K. – I can certainly try, and I will be as brief as possible, but I cannot guarantee to make it very simple. A legal person is an organized entity, created for the accomplishment of a

certain objective, having its own property, legally recognized and granted rights and duties including the ability to make contracts, to sue and be sued and other powers related to the full expression of the entity in law. It should be noted that a legal person may be organized as a corporation (legal person is an incorporated entity), based on membership, dependent or independent upon the status and condition of its members, engaged or not engaged in commercial business operations (entrepreneurship).

NBR – How about the Legal Persons of public law?

L.K. – Good question! Legal persons under public law participate and operate in civil relations in the same way and manner as legal persons of private law, but the procedure of creation, organization, and action is legalized and regulated merely by the law.

NBR – Could you, please, provide us with information on legal capacity of a legal person according to the Georgian legislature?

L.K. – The legal capacity (rights) of legal person begins from the moment of its registration and ends from the moment when its liquidation is registered. I simply wanted to add that a legal person of public law is entitled to perform activity determined and prescribed by law or by its founding document. As for a legal person of private law, whether commercial or non-commercial, it is allowed to undertake any activity not prohibited by law, whether this activity is provided or not provided for in its charter. It should also be said that certain kinds of activities, envisaged by law may be carried out by a legal person on the basis of a special license. Acquiring that license is the moment of beginning of legal capacity in such situation.

NBR – What do you say about a seat of a legal person?

L.K. – The seat (domicile) of a legal person is the place where the management (administration) is conducted and located. Any other residence of a legal person is deemed by law as a seat of its branch (daughter company).

NBR – What kind of legal persons are determined by Georgian civil litigation?

L.K. – According to the functioning civil law, commercial and non-commercial legal persons are operated in Georgian legal milieu. Our legislation envisages features, aspects and nuances both of them in more details. A legal person whose object is commercial must be created in compliance with the law about entrepreneurs. But firstly, I want to concentrate your attention only on a non-commercial legal person.

NBR – Please, explain to us the specificity of a name of a legal person.

L.K. – All legal persons whether commercial or non-commercial have their own name. A non-commercial legal person must have a name that includes the indication of its organizational form. It is legally recognized that a person who unlawfully uses the name of another legal person is bound to stop such use on demand of the entitled person as well as to compensate the damage caused by the illegal exercise of it. It should be noted that in case of stainting honor, dignity or business reputation of a legal person, there is a variety of opportunity for observing and realizing legally identified and granted rights and legitimate interests.

 

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