Whit is a "body corporate", an why it maitters for lendin

Summary: a body corporate is an organisation the law treats as a separate legal body, distinct frae the fowk that ain or rin it — in practice, a leemitit company (registered at Companies House) or a leemitit liabilitie pairtnership (LLP).

Why it maitters

Acause a body corporate is a separate legal body, its debts are its ain — no the personal debts o the directors. Unner Article 60B (read wi Article 60L) o the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (FSMA RAO 2001), lendin tae a leemitit company or LLP for business purposes generally sits ootwith the FCA's consumer-credit regulation. We lend tae the company, an we dinna tak a personal guarantee frae the director.

Whit this means for ye

The debt bides wi the company, but the consumer-credit safety net — includin the Financial Ombudsman Service an the FSCS — disna apply. Ye can verifie the company on the Companies House register (company number 16093826).

Scots summary — the hale English version o this airticle is the authoritative ane. Read the hale airticle in English