• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

company law

Extracts from this document...


Critically Assess the Effects of Corporate Separate Personality A company once incorporated, is a legal person in its own rights and is to be regarded as separate entity from its members. Incorporation is the act of creating or organizing a corporation under the laws of a specific jurisdiction. The corporation may be a business, a non-profit organization, sport club or even a government of a new city or town. To incorporate a business the owner must first register with the Registrar of Companies. According to Companies Act 2006 section 16 it explains the effect of registration.1 All company after incorporation has legal rights and obligations. These obligations must be followed if the company is to 'survive'. Each corporation has the ability to sue and be sued, the ability to hold assets in its own name, the ability to hire agents, the ability to sign contracts and the ability to make laws which govern the internal affairs. ...read more.


The principal in Solomon V Solomon has led to the phrase the veil of incorporation. Only the judiciary or the statute may lift the veil of incorporation. Another case that distinguishes the concepts of corporate personality is Lee V Lee's Air Farming Ltd. In this Case the husband of Lee (Cathrine) formed a respondent company that carried on a business of crop spraying from the air. He was then killed while performing his duties. His wife then claimed compensation from the company as an employer of her husband. Since Mr. Lee owned 2999 of 3000 �1 shares and since he was the governing director the was an issue as to whether a relationship of employee can exist between him and the company. The court held that he was separate from the company and his wife was entitled to compensation required by the act of 1922. ...read more.


Also loss of privacy and cost of documentations is an issue of separate corporate responsible. However their is an exception to the rule of Salomon V Salomon, this is the lifting ofthe veil of incorporation. "the veil never means that the affairs of the company are completely concealed from view" (Pickering 1968 31 modern Law Review). The courts will now piece the veil of incorporation under both common law and legislation. The outcome of the case of Woolfson v Strathclyde Regional Council indicates the exception rule to Salomon V Salomon. The ruling in this case is that the veil can be pierced only when the company is a mere facade concealing the true facts. Since the Salomon case their has never been a doubt of what contributes as corporate separate governance. The case specified all the rules that is able to distinguish from its members and the company. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Sources of Law section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Sources of Law essays

  1. Commercial law discussion - 'Transfer of Title by a Non-Owner'.

    'A' issued a cheque and was given possession of the car but in due course his cheque bounced. The plaintiff took immediate steps to avoid the contract, and after he had done this A sold the car to B in a London street market and B sold the car to the defendant.

  2. Unmarried fathers and their children - has the law got it right?

    In the 1950's when the stigma of illegitimacy was great; unmarried mothers were advised to adopt their own children in order to conceal illegitimacy, improve the child's status and prevent the father interfering. Adoption orders to unmarried mothers were anomalous since they did not end the father's obligation to support the child.

  1. GNVQ Business - Customer Satisfaction

    I.e., provided it is shown that the description was applied and was false the offence is proved and the accused has to prove certain defences in order to escape conviction. Marks and Spencer has to comply with these rules by making sure that all products have a correct description and no misleading information is given.


    Following a recommendation from the public accounts committee, the Province of Canada revised the Currency Act in 1857 so that, from 31 December 1857, all provincial accounts would be kept in dollars. Consequently, silver and bronze coins, denominated in cents and bearing the word "Canada," were subsequently issued for the first time in 1858.

  1. Outline many of the basic elements of law that relate to business and marketing.

    consumers to resolve disputes about consumer transactions, including the buying and selling of goods and services and landlord and tenant matters * Encourage businesses and consumers to act honestly, ethically and responsibly * Ensure that consumers receive fair measure in all consumer transactions and ensure that the goods they purchase

  2. Advice on an incident concerning Land Registration.

    The court has the power to decide whether sale should proceed or not. It looks at three factors4 when making its decision. Firstly, the intention of the person who created the trust. Secondly, purposes for which the property subject to the trust is held.

  1. Argue for and against the incorporation of the Human Right Act into British law

    These rights clash with the sovereignty of parliament because sovereignty means that there is nothing that can blind our parliament. But the Human Rights Act tries to do this. When the Human Rights Act really gets going, judges will be involved in political cases.

  2. Should people have a right to privacy?

    On May 19th, a report by a judicial committee led by Master of the Rolls, Lord Neuberger recommended and observed that in brief, the media should be given advanced notice of the passing of any super-injunction yet the media should not inform those who the accusations refer to.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work