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The general legal principle is that a company has a separate legal existence from that of its members. In what circumstances does that general principle not apply? Give example of such situations.
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The general legal principle is that a company has a separate legal existence from that of its members. In what circumstances does that general principle not apply? Give example of such situations. The general legal principle is that a company becomes a legal person different from its members. The fact that a company is a separate legal entity from its member is not necessarily beneficial to those members. If a trader sells his business to a company he will cease to have an insurance interest in assets thought he owns most of the shares. The most significant exception to the concept of separate legal personality has concerned parent companies and subsidiary undertakings. Thus for the purpose of presentation of financial statement the companies in a group must be treat as one. For example, a group of three companies were treat as one for the purpose of awarding compensation on the compulsory purchase...
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