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    CHARTS Company Law CHAPTER 5

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    khomala rueban
    This document discusses the legal concept of a separate legal entity for companies. It makes three key points: 1) A company is considered a separate legal entity from its owners and can sue or be sued on its own. This provides commercial protection under the corporate veil. 2) There are some exceptions where the corporate veil can be pierced, such as in cases of fraud or when the company is being used as a facade to conceal the true facts. 3) Recent court rulings have recognized exceptions for cases explicitly outlined by statute/contract or where an express agency relationship exists between the company and its owners.

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    CHARTS Company Law CHAPTER 5

    Uploaded by

    khomala rueban
    8 views1 page
    This document discusses the legal concept of a separate legal entity for companies. It makes three key points: 1) A company is considered a separate legal entity from its owners and can sue or be sued on its own. This provides commercial protection under the corporate veil. 2) There are some exceptions where the corporate veil can be pierced, such as in cases of fraud or when the company is being used as a facade to conceal the true facts. 3) Recent court rulings have recognized exceptions for cases explicitly outlined by statute/contract or where an express agency relationship exists between the company and its owners.

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    CHARTS_Company_Law_CHAPTER_5

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    This document discusses the legal concept of a separate legal entity for companies. It makes three key points: 1) A company is considered a separate legal entity from its owners and can sue or be sued on its own. This provides commercial protection under the corporate veil. 2) There are some exceptions where the corporate veil can be pierced, such as in cases of fraud or when the company is being used as a facade to conceal the true facts. 3) Recent court rulings have recognized exceptions for cases explicitly outlined by statute/contract or where an express agency relationship exists between the company and its owners.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    8 views1 page

    CHARTS Company Law CHAPTER 5

    Uploaded by

    khomala rueban
    This document discusses the legal concept of a separate legal entity for companies. It makes three key points: 1) A company is considered a separate legal entity from its owners and can sue or be sued on its own. This provides commercial protection under the corporate veil. 2) There are some exceptions where the corporate veil can be pierced, such as in cases of fraud or when the company is being used as a facade to conceal the true facts. 3) Recent court rulings have recognized exceptions for cases explicitly outlined by statute/contract or where an express agency relationship exists between the company and its owners.

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    of 1

    Chapter 5 Separate Legal Entity

    Separate Legal Entity

    - A company is protected by a corporate


    veil of incorporation i.e, the company is a Common Law Exceptions (Pre Adam v Cape
    person in law and can institute or be party Industries)
    to a legal action 1. Agency
    - Salomon v A Salomon Ltd 2. Single economic unit
    1. A company is protected by the corporate 3. Fraud
    veil 4. Justice (quite a vague argument?)

    2. This is to ensure commercial efficacy

    Current Position
    Adam v Cape Industries
    Prest v Petrodel Resources
    Megary V-C in Estmanco v
    - recognised 3 exceptions
    - The Supreme Court Greater London Council
    to the Salomon principle
    “fused” both Salomon v A
    Salomon Ltd and Adam v - The exception pre 1. Expressly provided by
    Cape Industries Adam v Cape can be stattute/contract
    used as reasons to
    apply the post Adam 2. Express agency
    - Separate legal entity
    protects companies and exceptions 3. Façade concealing the
    can be pierced if there true facts
    is evidence of façade
    concealing the true facts of
    the case

    9 www.bac.edu.my

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