Company Law and Insolvency

The first 200 words of this essay...

Contents

1. Synopsis

2. Overview of limited liability

2.1. Historical background of limited liability

2.2. A glimpse of EC law and UK insolvency law

2.3. Digress: a brief note of economic and social justification and criticism

3. Arguments for and against limited liability - a legal perspective

3.1 Arguments under company law

3.1.1. Foundational issues - the nature of legal personality and lifting the veil of incorporation

3.1.2. Constitutional issues - the ultra vires doctrine and Turquand's rule

3.1.3. Constitutional issues - Directors' duties and the protection of minority shareholders

3.1.4. Constitutional issues - corporate governance

3.2 Arguments under insolvency law

4. Summary

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1. Synopsis

The question requires a critical discussion in light of recent corporate failures of the statement by Michael Schluter1, whereby he asserts if the legal institution of limited liability is morally wrong, it will be worth our while to modify or even remove it completely2. The question also asks the extent I agree with the statement that limited liability should be modified and/or abolished. It is proposed to structure the discussion as noted in the contents above in order to