Theories of Corporate Personality

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Theories of Corporate Personality

MANAS AGARWAL
5th Semester BA LL.B (B)
School of Law
Christ University
Bangalore

INDEX

* Research Methodology
* Introduction
* The Common Law Perspectives
* Fiction Theory
* Concession Theory
* The Purpose Theory
* Bracket Theory
* Realist Theory
* Why Corporations?
* Corporate Personality And Limited Liability
Cases:
* Macaura v. Northern Assurance Co.
* Lee v. Lee’s Air Farming
* Salomon v. Salomon & Co.
ACKNOWLEDGEMENT

I Manas Agarwal of B.A.LL.B (Hons.) is really grateful to Ms. Fincy V, without whose help and corporation this project would not have been possible. I am also grateful to the National Law School India University (N.L.S.I.U) Library staff and the Knowledge Centre, Christ University staff, whose cooperation is appreciable. I think this kind of assignments lead to the overall development of the students and I am looking forward to take up such assignments in future.

RESEARCH METHODOLOGY

• SCOPE AND FOCUS: -
This research paper essentially seeks to study and criticise the different theories of corporate personality considering the jurisprudential conflicts.

• RESEARCH OBJECTIVES: -
* The principal objective of our research is to study and criticise the different theories of corporate personality and the concepts under it. * Another objective of our research is to find conflicts between the various theories relying on various judgments.

• RESEARCH QUESTIONS: -
* What is the difference between various theories of corporate personalities. * The meaning and limits of a corporate personality.

• METHOD OF ANALYSIS: -
This project has its basis on the following methods of analysis:- DESCRIPTIVE: -
The first task is to comprehensively study and critize the jurisprudential theories of corporate personalities. ANALYTICAL: -
Further these concepts and observations can be analyzed. The valuable knowledge that is gained from studying the commentaries must be used to understand the evolution of the theories and the law itself in terms of some cases. • MODE OF CITATION :-

The researcher(s) has used a uniform mode of citation in this paper.

Introduction
There is an interesting conflict between philosophic theories as to the nature of corporate personality and the insurgent demand of economic forces for a further recognition of those form of organisation which seem so essential to modern life. The grant of legal personality is clearly within the gift of the state, for it may be refused to natural persons. In the case of natural person, however, it is clear that law grants legal personality to a physical entity existing in space and possessing what (for lack of better term) we describe as human personality. While philosophy may find difficulty in analyzing or describing the real nature of human personality, few of us doubt that we exist, and we compensate for our defective analysis by an intuitive understanding of our own nature which, however inadequate it may be, at least gives a substratum on which to build. As far as legal personality is concerned, there is no very significant difference between that granted to human beings and that to non-human beings such as groups or other entity. The decision of House of Lords in Salomon v A Salomon & Co. Ltd had a lasting influence in corporation law. It is often credited with the principle of separate legal entity of the corporation distinct from the members.

Though there is no doubt that the Salomon case had play a significant role in company law, the decision in this case was hardly the origin of the separate legal entity principle. The legal entity of beings other than the human has long been recognized prior to 1897, in which the Salomon case was decided. The jurisprudence theories on juristic person had been established since the early Roman law to justify the existence of legal person other than the human. The State, religious...
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