Ltd One of the essential values of company law is that a company possesses their own character that is diverse from the personality of its shareholders, such as the case of Salomon v Salomon Co. They look to see what really lies behind.
I will now give examples of company law cases and the circumstances under which the veil of incorporation can be lifted by the various statuary provisions such as Section 24 of the Companies Act CA The principle of having Separate Legal Personality means is a legal entity that separate company and individual.
According to Samuels JA.
Ltd One of the essential values of company law is that a company possesses their own character that is diverse from the personality of its shareholders, such as the case of Salomon v Salomon Co.
In the expanding horizon of modern jurisprudence, lifting of the corporate veil is acceptable and its frontiers are unlimited. Thus there remain notable differences between corporate personality and independent personality in the human sense of the word as we know it.
The court will shift the veil when it appears that the company's business has been carried on with intent to defraud creditors then the court may declare that the directors who were knowingly parties to the fraud shall be personally responsible.
Industrial Equity v Blackburn 52 ALJR 89,where the High Court refused to treat a subsidiary company as merely part of its holding company for the purposes of determining the profits of the holding company because of the separate legal entity concept.
Salomon transferred the debentures to Broderip in exchange for a loan. Throughout the course of this assignment I will begin by explaining the concept of legal personality and describe the veil of incorporation. Ltd SupraWherethe House of Lords decided that insurers were not liable under a contract of insurance on property that was insured by the plaintiff but owned by a company in which the plaintiff held all the fully-paid shares.
The Waste Company had no staff, no separate In Qintex Australia finance Ltd v Schroders Australia Ltd 9 ACLCRogers CJ suggested that the whole issue of the separateness of the corporate legal entity be re-examined in the light of the so-called tension between the realities of commercial life and the applicable law.