Lifting the veil under case law, Business Law and Ethics

Assignment Help:

Lifting the veil under Case Law:

                 Numerous English cases have been variously classified by English writers as instances of "lifting the veil of  incorporation". A few of these cases are summarised  below. But it should be noted that the particular judges were merely ascertaining the facts of the case before  them and making the appropriate decision rather than  consciously or deliberately "lifting the veil of incorporation". It is the writers who have categorised the said cases as instances of lifting the veil because the decisions in those cases appeared to them to be a  modification of the principle in Salomon's case. These cases may be explained under the following headings.

Agency:

One of the ratio decidendi in Salomon's case was stated by Lord Macnaghten that "the company is not in law the agent of the subscribers". This proposition was affirmed by the English Court of Appeal and extended to associated companies in Ebbw Vale Urban District Council v South  Wales Traffic Area Licensing Authority when Lord Cohen stated:

"Under the ordinary rules of law, a parent company and  a subsidiary company, even a 100% subsidiary company, are  distinct legal entities, and in the absence of an agency  contract between the two companies, one cannot be said  to be the agent of the other. That seems to me to be  clearly established by Salomon v Salomon & Co Ltd (3).


Related Discussions:- Lifting the veil under case law

What are the stages in policy process, What are the Stages in Policy Proces...

What are the Stages in Policy Process The traditional textbook approach to the study of public policy separates policy making into its component steps and analyzes each in turn.

Accuracy of the managers certificate, Accuracy of the managers certificate:...

Accuracy of the managers certificate: Was it the duty of the auditors to test the accuracy of the manager's certificate by a comparison of the figures in the books, and were t

Intellectual property right, Read the newspaper report from  The Internatio...

Read the newspaper report from  The International Herald Tribune, starting on page  2 of this assignment, and answer the following questions:  1. What is the general notion behi

Recent developments in mitigating phoenix activity, Q. Show Recent developm...

Q. Show Recent developments in mitigating phoenix activity? Since these previous works, there have been significant developments in mitigating phoenix activity. Following Tr

Domestic or family agreements - elements of contract, Domestic or Family Ag...

Domestic or Family Agreements - Elements of Contract However there is a rebuttable presumption such the parties did not intend for create legal relations as: 1. Agreements

Directors liability, Directors liability: This was fraudulent preferen...

Directors liability: This was fraudulent preference and the bank must repay the sums received. The directors' liability under their guarantee to the bank then revived. A paym

Procedure for registration of trade unions, Question 1: (a) The Employ...

Question 1: (a) The Employment Relations Act does not apply to all categories of workers. Describe. (b) What is the main procedure for registration of trade unions? Qu

Committee of inspection - winding up, Committee of Inspection:        ...

Committee of Inspection:                                       A committee of inspection is appointed in a compulsory liquidation and in a creditors' voluntary liquidation. It

State in brief about the term - reputations, State in brief about the term ...

State in brief about the term - Reputations Reputations can be defined as the actions an agent and expected to take. If he takes it up, he establishes his reputation or otherwi

What is the meaning of remuneration, QUESTION 1 Explain the meaning of ...

QUESTION 1 Explain the meaning of ‘constructive dismissal' with reference to appropriate case law QUESTION 2 (a) What is the meaning of remuneration? (b) What type o

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd