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

Manage the currency risks using the futures contract, Question 1: (a) "...

Question 1: (a) "A tourist resort which does business in a single currency is not exposed to currency risk." Discuss (use example to support your answer). (b) Case: Hedging

Remuneration - powers of managing director, Remuneration:             ...

Remuneration:             Article 108 provides that "a managing director shall receive such remuneration (whether by way of salary plus commission or may participation in earn

Contents of group accounts, Contents of Group Accounts: By s.152(1), t...

Contents of Group Accounts: By s.152(1), the group accounts laid before a company shall give a true and fair view of the state of affairs and profit or loss of the company and

Explain the right of self determination, Explain the right of self determin...

Explain the right of self determination The right of self determination amounts to an exception in the sense that when fighting for self determination, the state can render as

Explain immunities of international organizations, Explain Immunities of in...

Explain Immunities of international organizations The immunities of international organizations are almost always specified in a treaty between the organizations and the host

Limited, Name to end with the word "Limited":                         ...

Name to end with the word "Limited":                             S.5(1)(a) provides that the word "limited" must be the last word of the name of a company which is to be limit

Substantive and procedural law, Substantive Law: Therefore this is con...

Substantive Law: Therefore this is concerned through the rules themselves as opposed to the procedure on how to affect them.  So it defines the rights and duties of parties an

Adequacy of consideration - law of contract, Adequacy of consideration - La...

Adequacy of consideration - Law of Contract Well provided that consideration is sufficient, or actual it necessitate not be adequate.  Hence the court will not compare the val

State the principle of absolute immunity, Explain the principle of absolute...

Explain the principle of absolute immunity The absolute immunity principle gradually eroded and restrictive immunity approach was followed. However, many developing countries r

Void contracts - law of contract, Void Contracts - Law of Contract Whe...

Void Contracts - Law of Contract Whereas  the Infant's Relief Act 1874 of the UK applies to the US as a statute of general application such was in force in the UK on date 12 A

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