Corporate veil Introduction With the contemporary appreciation of the separate entity principle in courts‚ it has become increasingly difficult to predict the outcome of cases with precision as in the case of Salomon v. Salomon & Co Ltd (1897). Separate corporate personality has been firmly recognized by common law after the verdict given in the case of Salomon v. Salomon & Co Ltd (1897). It was confirmed that a corporation has legal right‚ personality‚ and obligations completely divergent
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decisions by traders and businessmen to forming companies. Consequently‚ traders and businessmen will see as the main attraction of forming a company the advantage of avoiding liability for business debts. This advantage arises from the concepts of separate legal person and limited liability which are embodied in the doctrine of corporate veil under company law. However‚ some businessmen‚ law scholars and the public at large argue that corporate veil is nothing but a fallacy meant to dupe business
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CORPORATE LAW AND SECRETARIAL PRACTICES | April 8 2013 | SUBMITTED BY: | INCORPORATION OF GALLANT CHEMICALS | INCORPORATION OF GALLANT CHEMICALS: MEMORANDUM OF ASSOSIATION: THE COMPANIES ORDINANCE‚ 1984 (PRIVATE COMPANY LIMITED BY SHARES) MEMORANDUM OF ASSOCIATION OF GALLANT CHEMICALS PRIVATE LIMITED 1) The name of the Company is "GALLANT CHEMICALS PRIVATE LIMITED." 2) The Registered Office of the Company will be situated in the province of BALOCHISTAN. 3) The objects
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‘exercised due diligence to prevent’ (s12.3(3) CCA) the bribe and thus‚ s12.3(2)(b) CCA will apply. In Lennards3‚ the court ruled that the director’s knowledge attributed to the company. This means that GE will be liable for the bribe. As GE is not a physical being‚ s4B of the Crimes Act4 states that instead of imprisonment‚ the company pays a fine as penalty.
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characteristics of company. In short‚ company means a body of persons combined for a common object. A company exist there must be a group of persons that more than 1 persons. In eyes of law‚ a company is a separate legal personality from its members. In Section 16(5) CA1965‚ it stated that a body corporate obligations and liabilities are its own‚ and not those of its participation; it can sue and be sued in its own name; the property is not the property of its participants; and company can enter into
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LIFTING OF THE CORPORATE VEIL INTRODUCTION • The principle of separate corporate personality as confirmed in Saloman v. A Saloman & Co. Ltd. [1897] forms the corner-stone of co. law. • The recognition that a co. is a separate legal entity distinct from its shareholders is often expressed as the veil of incorporation. • Incorporation of a co. casts a veil over the true controllers of the co‚ a veil through which the law will not usually penetrate. • Once a co. is incorporated the courts usually
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Introduction The term “registered company” means a company starts its operation or formed by registration under Companies Acts 1965(1). A registered company is explained by the law as a person‚ a human being. This artificial person can own land and other property‚ enter into contracts‚ sue and be sued‚ have a bank account in its own name‚ owe money to others and be a creditor of other people and other companies‚ and employ people to work for it (2). Section 16(5) of the Companies Act 1965 states that on and
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(SAPS) by going into business. a) Advise them on the procedures they have to follow in order to register a public company limited by shares. (8 Marks) b) Explain how the procedures would differ from that for forming a private company limited by shares. (4 Marks) c) Discuss the circumstances under which a corporate veil of incorporation may be lifted. (8 Marks) QUESTION TWO a) Explain the role in Trevor Vs Whiteworth (887)
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..........................................................2 Definition of a Company ............................................................................................................................................2 Features of a Corporation ..........................................................................................................................................3 Difference Between a Company and Its personnel ..........................................................
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COMPANY LAW – EXAM NOTES Incorporation and Its Effects S117 - All companies must register with ASIC S118 – All companies must have a Number S119 – Once the company is registered with ASIC‚ the company has a separate legal existence. Separate Legal Entity The separate legal entity notion is shown in Salomon v Salomon where a company shareholder is limited to the amount of share capital they have contributed and they can not be held personally liable for the dealings of the company. This notion of
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