The corporate veil
From the jurstic point of view, a company is a legal personal distinct from its members. This principle may be refered to as “the veil of incorporation”. The courts in genral consider themselves bound by this principle.
Exceptions:
1.protection of revenue.
2.prevention of froud or inproper conduct.
3.determination of cherecter of a company whether it is enemy.
4.where the company is a sham.
5.company avoiding legal obligation.
From the jurstic point of view, a company is a legal personal distinct from its members. This principle may be refered to as “the veil of incorporation”. The courts in genral consider themselves bound by this principle.
Exceptions:
1.protection of revenue.
2.prevention of froud or inproper conduct.
3.determination of cherecter of a company whether it is enemy.
4.where the company is a sham.
5.company avoiding legal obligation.
6.company acting as agent or trustee of the shareholders.
7.avoidence of welfare legislation.
8.protecting public policy.
Statutory exeptions:
If a company carries on business for more than 6 months after the number has been reduced below 7 in case of a public company or 2 in case of a private company.
1.number of members below statutory minimum.
2.failure to refund application money.
3.misdespertion of company name.
4.fradulment of trading.
5.holding and subsidery company.
7.avoidence of welfare legislation.
8.protecting public policy.
Statutory exeptions:
If a company carries on business for more than 6 months after the number has been reduced below 7 in case of a public company or 2 in case of a private company.
1.number of members below statutory minimum.
2.failure to refund application money.
3.misdespertion of company name.
4.fradulment of trading.
5.holding and subsidery company.
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