Understand company basics and identify who you’re dealing with

Throughout daily life you’ll regularly deal with businesses on the Isle of Man and in other countries. From the plumber who comes to mend a leak to the high-street chain-shop you prefer to buy clothes from, and the company that offers professional services, companies interact with you to supply a huge variety of products and services.

When everything runs smoothly you generally won’t give these companies a second thought, but when things go wrong it’s often necessary to look at the legal identity of who you’ve been dealing with.

A small trader will often work under his own name or a registered business name, and two or more individuals may be trading as a partnership.

However, in most cases you’ll find that businesses have chosen to form a limited company. Our blog series will focus on limited companies; explaining company basics, the role of the directors, administration basics, and what’s involved in winding up a company.

What is a company?

In simple terms, a company is an entity with an identity that is independent of its staff, shareholders, and officers. It can only be created under a legal framework, and in the Isle of Man there is a choice between a company formed under the Companies Act 1931 or one formed under the Companies Act 2006. The registration procedures for each differ but you’re in no different position when you deal with either.

How do you know you’re dealing with a company?

Start with the paperwork. All official documents issued by an Isle of Man company (in which the company name appears) must by law show the company number, the registered office of the company and the place of registration. You can also find out basic information about a company by enquiring at the Companies Registry or making a search online on their website.

Why is it important to identify if you’re dealing with a company?

As we’ve already said a company is normally separate from its members and officers, so if it finds itself in financial difficulties, it’s only the company’s assets that are available to satisfy its liabilities. Equally, if you’ve experienced a problem with a service or product and you plan to make a claim, it’s important that you choose the right individual or firm to issue legal proceedings against.

Next time

In this post, we’ve looked at what a company is and your position when dealing with a company. Next time we’ll be looking in more detail at the position of company directors.

What’s your next move?

When you’re dealing with a company and problems arise, it can be difficult to solve them on your own. If you’re having trouble with a company and plan to make a claim, Quinn Legal’s litigation team can support you with quality legal advice and expertise in resolving disputes.

For people working in a company or running their own business, company law and regulation can be complex. If you’re experiencing difficulties navigating this area of law, it’s worth seeking legal advice from a team of company law experts. With industry-experience, Quinn Legal’s business team has specialist advocates ready to listen to your business needs and advise on a huge variety of company concerns.

To make an enquiry, get in touch with our approachable teams by calling 01624 665522 or emailing hello@quinnlegal.im