Company Law Essay Example | Topics and Well Written Essays - 2000 words - 5

Company Law - Essay ExampleFundamentally, the House of captains thus embedded the separation of the merged personality from its members and it became its own entity, rendering it capable of suing and being sued of entering into contracts4 of owning property and of making profits and losses in its own name.5 The final gene established was the widely famous advantages of limited liability enjoyed by shareholders, limited only to the unpaid amount of their shares. These principles have been referred to a reused in countless cases Lord Templeman himself described the dicta in Salomon as an unyielding rock6 and it is now embodied in the Companies Act 2006.7As is the case with most fundamental principles next a single landmark case, a broad debate has been alive since the decision. Indeed, the courts have been faced with circumstances in which exceptions to Salomon have been necessary and indeed allowed. Thus, unmatched is faced with a fundamental principle, deemed to apply broadly, y et inevitably the court has managed to manoeuvre around the Solomon rules in order to make it more flexible. But is this genuinely flexibility, or an undesired and confusing method of applying the rules simply whenever the court deems fit or not? This topic is linked to clarity if one can pull through at a clear set of circumstances under which the corporate veil will not be lifted, then one can do at the conclusion that the Salomon decision is safely applicable. If these circumstances are not evident, then it seems that the courts apply it or not at whim, and the Salomon case is at the grace of the court and its view of whether the veil should be lifted in the particular circumstances or not. The specifics of these circumstances are affected by the two unlike views surrounding the consequences of separate legal personality. The narrow view - as that contained in the Companies Acts - holds