1.1 - Separate Legal Personality Flashcards
1
Q
How is a company considered legally?
A
A legal person with its own legal personality, separate from the members
2
Q
What is there between a company and its members?
A
A veil of incorporation
3
Q
When may the veil sometimes be lifted?
A
To avoid inequitable results
4
Q
In what way may companies be liable?
A
May be liable in criminal law for committing crimes, and subject to financial penalties
5
Q
What is the leading case regarding this?
A
Salomon v Salomon & co. Ltd (1897)
6
Q
What happened in Salomon v Salomon & co. Ltd?
A
- Saloman was sole trader and sold company to become business
- became a secured creditor
- went company went bust, he got paid before unsecured creditors
- unsecured creditors thought Saloman should pay them, but veil says otherwise
