• 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'.

    The defendant had no right to sell the car, however he does transfer ownership because it is one of the exceptional cases where a non-owner seller can make the buyer owner. However the seller is in breach of s12(1) of the Sale of Goods Act. Even though the defendant (seller)

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

    play a full legal part in his child's life may be unfair, especially if, for example the mother refuses to marry him. The rationale for refusing equality of position lies in the assumption of the European Court, that some unmarried fathers are' unmeritorious' and must be denied legal rights over

  1. Legislations and regulations in sport

    Generally it will be complied with if all the following conditions are met: - the common law of confidentiality and any other applicable statutory restrictions on the use of information are complied with; - the data subject was not misled or deceived into giving the data; - the data subject

  2. Torts project - Payment of Compensation in Hit and Run Motor Accident.

    In the case Guranna Vadi & others v. General Manager, Karnataka State Road transport Corporation and other11 the Karnataka high Court laid down the principles with respect to section 163- A based on the following queries: 1. Whether section 163- A of the Motor Vehicle Act, 1988 confers substantial or procedural rights to the claimant?

  1. GNVQ Business - Customer Satisfaction

    Observations of Customer Service Results from the Marks and Spencer survey I conducted showed that most people visit Marks and Spencer on a weekly basis. I also found that the majority of people think that the level of customer service they receive is high and not one person said that it was bad.

  2. Indigenous peoples, almost without exception, have been dispossessed and disregarded by those who 'discovered' ...

    In light of the Lansman decision, it can now be said with certainty that article 27 does not apply only to traditional means of livelihood13. A contention from Finland that the more modern methods used by the herders, involving the use of snowmobiles, rendered the article inapplicable was rejected.

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

    This signifies that the taskforce organisations believe that educating the public is the best protection against scams. b) Visit the OCBA website. Discuss the role of the OCBA in relation to the marketing industry. According to The Office of Consumer and Business Affairs (2005), under the heading of "What We

  2. Should people have a right to privacy?

    Although the Eddie Irvine case is frequently acknowledged as signalling the arrival of image rights, the English High Court's verdict alters very little. To emphasise the problems regarding the English law, there has been rapid growth of the US system.

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