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Dear experts, please apprehend the question properly and type your answer. Avoid posting your answer through photos. Ple
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Dear experts, please apprehend the question properly and type your answer. Avoid posting your answer through photos. Ple
Dear experts, please apprehend the question properly andtype your answer. Avoid posting your answer through photos. Pleasecheck for grammar and spelling errors before posting. Yourcooperation is greatly appreciated.
Case study: Salomon v Salomon Ltd, 1986, introduced the foundational principle of English company law, the separate legal personality of a company. Up until this time the relations of a company had mainly been transactional and wide scale investment was dissuaded as shareholders were liable for any debts that a company accumulated. The concept created a 'veil' of incorporation, separating the debts, assets, obligations and rights of the company from its shareholders and directors. However there are cases where courts (through the judiciary or legislature) have 'lifted the veil' of incorporation and identified members or directors as having personal liability for actions of the company. This essay will examine the extent to which the separate legal personality of a company equates to shareholders and directors not being responsible for liabilities that arise from the actions of the company. Based on the above case study: 1. Analyse the issues from the case study. 2. Elaborate the actions that has been taken from the case study.
Case study: Salomon v Salomon Ltd, 1986, introduced the foundational principle of English company law, the separate legal personality of a company. Up until this time the relations of a company had mainly been transactional and wide scale investment was dissuaded as shareholders were liable for any debts that a company accumulated. The concept created a 'veil' of incorporation, separating the debts, assets, obligations and rights of the company from its shareholders and directors. However there are cases where courts (through the judiciary or legislature) have 'lifted the veil' of incorporation and identified members or directors as having personal liability for actions of the company. This essay will examine the extent to which the separate legal personality of a company equates to shareholders and directors not being responsible for liabilities that arise from the actions of the company. Based on the above case study: 1. Analyse the issues from the case study. 2. Elaborate the actions that has been taken from the case study.