(solved) Assignment on Company Law

Added on - 21 Apr 2020

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Running head: COMPANY LAWSeparate Corporate PersonalityName of the student:Name of the university:Author note
1COMPANY LAWSeparate corporate personality is the main theme of the case and it is advisoryin nature. The principle was held in the case of theSaloman v Saloman(Saloman v SalomanCo Ltd. [1897] AC 22). It was held that the shareholders of an insolvent company could notpersonally be liable for the outstanding debts of the company. Status of the company couldnot be harmed at any way (Bainbridge 2013).The court has observed that where the moral principle of the corporation isinvolved, court may pierce the corporate veil. Alan is thereby advised to point out the moraldilemma, if any, present in the incorporation of the company. it is also stated by the court thatif the company is established to defraud the others, this doctrine can be applied. Alan isadvised not to adopt any fraud purpose. The necessary provision has been mentioned in thecase ofGilford Motor Company v Horne.InDHN Food Products Ltd. v Tower Hamlets,court has decided that if thenature of the company depicts similar economic entity than the principle could be applied.Alan is advised to analyse the economic entity of his company.In the light of the decisionheld inSaloman v Saloman [1897], it can be said that Alan could get the benefit under thedoctrine of separate corporate personality (Lo 2017)if not all the previous stated provisionsare match up. It is a fact that he is not the director or the shareholder of the company.Therefore, it can be advised that the officials could not stop him trading or prove the illegalityof the new company.
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