Company Law Essay Example | Topics and Well Written Essays - 2000 words - 5

Company right - Essay ExampleFundamentally, the House of Lords thus embedded the separation of the corporate personality from its members and it became its feature entity, edition it capable of suing and being sued of entering into contracts4 of owning property and of making profits and losses in its own name.5 The final element established was the widely famous advantages of limited liability enjoyed by shareholders, limited plainly to the unpaid amount of their shares. These principles tolerate been referred to a reused in countless cases Lord Templeman himself described the dicta in Salomon as an unyielding rock6 and it is now embodied in the Companies Act 2006.7As is the case with roughly fundamental principles following a single landmark case, a broad debate has been alive since the decision. Indeed, the courts have been faced with circumstances in which exceptions to Salomon have been necessary and indeed allowed. Thus, iodin is faced with a fundamental principle, deeme d to apply broadly, yet inevitably the court has managed to manoeuvre around the Solomon rules in order to make it much flexible. But is this really flexibility, or an undesired and confusing method of applying the rules simply whenever the court deems fit or not? This topic is linked to clarity if one can arrive at a pretend set of circumstances under which the corporate kill will not be lifted, and then one can arrive at the conclusion that the Salomon decision is safely applicable. If these circumstances are not evident, then it seems that the courts apply it or not at whim, and the Salomon case is at the mercy of the court and its view of whether the veil should be lifted in the particular circumstances or not. The specifics of these circumstances are affected by the two different views surrounding the consequences of separate legal personality. The narrow view - as that contained in the Companies Acts - holds