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

Aggrieved oecision of the minister of public infrastrator, QUESTION G...

QUESTION Gerald is aggrieved of the decision of the Minister of Public Infrastructure to build a high way bypass through his housing estate. Gerald has been advised to apply

International bank operating in an international market, Question: (a) ...

Question: (a) Describe the various risks faced by an international bank operating in an international market, with emphasis on interest rates and market risks. (b) Show how

Resource journal, For the resource journal, you'll need to assemble: An ...

For the resource journal, you'll need to assemble: An Award and an Agreement plus a minimum of three samples of legislation that have grievance and/or dispute resolution process

Article 33 - pacific settlement of disputes, Article 33 - Pacific settlemen...

Article 33 - Pacific settlement of disputes Article 33 the meaning of Negotiation is the same as in domestic law. It is a preferred mode and third party intervention is not nee

Executory consideration - types of consideration, Executory Consideration -...

Executory Consideration - Types of Consideration Although Executory consideration consists of a promise made about one party and a promise made through the other party to the

Register of directors shareholdings, Register of Directors' Shareholdings: ...

Register of Directors' Shareholdings: Section 196(1) requires every company to keep a register showing the number, description and amount of any shares or debentures which are

Negotiable instruments - law of contract, Negotiable Instruments - Law of C...

Negotiable Instruments - Law of Contract However past services may constitute valuable consideration to a bill of exchange under by s.27 of the Bills of Exchange Act that prov

Reading - categorization of law, READINGS: First Reading In this ...

READINGS: First Reading In this order 101 provides like "every Bill shall be read a First Time without motion made or enquiry put and shall be ordered to be read a second

Harm both companies'' reputations, Part of the client's contract clearly st...

Part of the client's contract clearly states that negative publicity will not be tolerated on any actions connected to the temp agency. You know that this situation can harm both c

Domicile, I would like to know more about Domicile of Dependency at Englis...

I would like to know more about Domicile of Dependency at English Law: Married women and minors.

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