Lecture 4

Question 1

corporate veil

Answer 1

Separate legal personality - on incorporation, a company becomes a legal entity separate from its shareholders

Question 2

2 Ways to life the corporate veil

Answer 2

• Fraud exception, if the company is a mere facade to defraud the creditors
• Single economic unit theory, when a group of companies is in fact one single economic unit

Question 3

When do companies enjoy the right of establishment according to the TFEU

Answer 3

• If they are formed in accordance to the law of a member state
• If they have a connection to a member state (registred office, central admin, principal place of business within the EU)