separate legal personality

However the principle of separate legal personality comes with it some vagueness especially when one looks at the exceptions which come with the principle. Separate Legal Personality / Entity • Co & its members are two separate bodies. Legal personality of law is recognised both in English and Indian law. See the case of Moore v I Bresler Ltd where the court held a company liable for false publication of taxable transactions by the company’s secretary and the branch sale manager. Corporate personality and limited liability are closely linked. See the case of Lennard’s Carrying Co Ltd v Asiatic Petroleum Co Ltd where Viscount Haldene had this to say, “… a corporation is an abstraction. The doctrine of separate legal personality divorces the rights, liabilities and asset-ownership of a company from that of its shareholders. See also the case of Director General of Fair Trading v Pioneer Concrete (UK) Ltd and the case of Bank of Credit and Commerce International SA where the court attributed the ‘directing mind and will’ to individuals who were not part of the directing body in order to prevent the directing mind and will of the company from escaping liability. Upon appeal to the House of Lords, it overturned the decision arguing that a company had been duly created and cannot be deprived of its separate legal personality. See the case of Jones v Hellard where the chief executive of a company was held liable for including the title fellow of the Royal Institute of British Architects (FRIBA) after his membership expired. Separate Legal Personality applied: ‘veil of incorporation’ i.e. In this case Mr Salomon a shoe manufacturer had sold his business to a limited liability company where he and his wife and five children where the shareholders and directors of the company (to comply with the Companies Act of 1862 which required a minimum of 7 members). See the case of Kosmopoulos v Constitution Insurance Co where the Justice Bertha Wilson held that “the best that can be said is that the separate entities principle is not enforced when it would yield a result too flagrantly opposed to justice, convenience…”One may then wonder what are those circumstances. Introduction to the Concept of Separate Legal Personality: It has been long established law that the key characteristic of a properly incorporated company is that it possesses separate legal personality. “The sanctity of a separate entity is upheld only in so far as the entity is consonant with the underlying policies which give it life.”1 The key concept of ‘separate legal personality’ has been proven to be one that hasn’t been able to be done away with; given how very well it has established itself over the years. The separate legal personality of a corporation is often the reason why a corporation has been favoured for the conduct of commercial enterprise or social organisation. Company Law. Separate Legal Personality To have legal personality means to be capable of having legal rights and duties within a certain legal system, such as to enter into contracts, sue, and be sued. Companies who act in conformity with the law and who do not abuse the privilege of separate legal personality are under no threat from the development of exceptions to this principle and the safeguards that have been put in place by the courts and the legislature have ensured that the solid foundation on which company law has rested is not threatened. It is the intent of the law is to create justice and fairness as it evidenced in both statutory provision and judicial decisions. Although they are linked, they are not the same thing. The court affirmed that importance of separate legal personality as a cornerstone in our law and the fact that this should not be disregarded lightly and that where there is fraud or abuse present, the court is required to perform a balancing act between the need to uphold separate legal personality, in the interests of the commercial world, with the need of remedying the harm that has been caused by the abuse of this privilege. By this natural persons will not be held personally liable if an act is done in the name of a company. A legal or juristic person cannot perform acts which are human in nature, for example, entering into a marriage or becoming a guardian for a minor. Corporate personality is a creation of law. In the case of Re a Company the defendant had set up companies in order to put away assets so as to conceal the fact that he was capable of meeting his liability to the plaintiff. See also section 213 of the Insolvency Act 1986 which holds a person in a company personally liable for any act which is calculated in the course of employment to defraud creditors or for any other fraudulent purpose and may be so disqualified under section 10 of the Companies Directors Disqualification Act of 1986. The Doctrine Of Separate Legal Personality Law Company Business Partnership Essay. separate legal personality (separate legal entity) Source: Australian Law Dictionary Author(s): Trischa MannTrischa Mann, Audrey BlundenAudrey Blunden. There are however instance created by law and equity where the court will disregard the separate legal personality, it means, “ Piercing the Corporate Veil ”. This case indicates the courts recognition of the importance of upholding separate legal personality as a fundamental principle in our law and the framework provided by the court in Cape Pacific has created safeguards against a general discretion to disregard the principle. Nombreux exemples de phrases traduites contenant `` having separate legal entity corporation is its legal! Limited by Shares and its owners ( shareholders ) of the company business partnership Essay director noting that company... 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