Question: “…The courts can and often do, draw aside the veil. They can, and often do, pull off the mask. They look to see what really lies behind. The legislature has shown the way… the courts should follow suit”. Assess the accuracy of this claim. 71%
Answer: When a company is incorporated, it is treated as a separate legal entity, distinct from its promoters, directors, members and employees and hence the concept of the corporate veil, separating those entities from the corporate body has arisen. The nature of corporate personality can be analysed by reference to the celebrated case of Salomon v. A. Salomon & Co. Ltd. Indeed it has been said that Salomon forms a cornerstone of company law and that the separate legal identity of a company stands as a fundamental principle of our English law.......(short extract)
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Details: - Mark: 71% | Course: Commercial Law | Year: 2nd/3rd | Words: 3229 | References: Yes | Date written: October, 2004 | Date submitted: February 15, 2009 | Coursework ID: 207
