close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Corporate Personality is The Laws Greatest Invention

downloadDownload printPrint

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

The principle of corporate legal personality was used by religious organizations, before it became a key principle of company law, to hold property in their own rights. With time, this principle was approved by the parliament in 1844 when it passed the joint stock companies act. The development of the principle of corporate personality during that time gave rise to many common law developments like the changing of legal conception of a share. These changes were reflected by the companies act 1862 as the act introduced a new wording in s.6 which implicitly described a registered company as being separate from that of its members by providing that members may form an incorporated company. There were some commercial developments too which changed the legal and functional nature of the company form. But it was not until Solomon’s case at the end of the 19th century that the concept of corporate personality was fully established. Since then it is being followed till the present date but the way it has been followed has taken many different approaches. The period between 1897-1996 was the period where the courts tried the different approaches to the doctrine keeping in mind the decision of the house of lords in the case of Solomon v. Solomon. This was the period of early experimentation with the doctrine of corporate personality.

Then came the period where the doctrine of veil lifting was encouraged which changed the rules of Solomon’s case. This was the period from 1966 to 1989. Lord Denning in Littlewoods Mailstores v IRC stated that “the doctrine laid down in Soloman’s case has to be watched very carefully. It has often been supposed to cast a veil over the personality of a limited company through which the courts cannot see. But that was not true. The courts could, and they often did, pull off the mask.”

This was the period where the courts began to disfavor the doctrine of Corporate Legal personality by often lifting the veil of the corporation. This continued erosion of the doctrine of corporate personality created uncertainty over the virtues of incorporation.

From 1989 to the present date, the courts moved back to the strict legal approach in Solomon’s case and began to discourage the doctrine of veil lifting keeping the rules of Solomon’s case intact. Woolfson v. Strathclyde, Regional Council is the famous case which began to disapprove veil lifting and in that case, “Lord Keith stated that the only situation where a corporate veil could be lifted was where there are special circumstances indicating that the company is a ‘mere facade concealing the true facts.’ Thus, the English Courts after the judgment of the Court of Appeal in Adams v. Cape Industries started to take a very narrow view of the doctrine of veil lifting.”

It was always clear that the courts were not interested in challenging the decision of the House of Lords in Solomon’s case. Therefore, the principle of corporate personality remains the ground upon which modern company law is based. The importance of the principle of corporate personality lies in the consequences that flow from it.

infoRemember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism-free

Sources and citations are provided

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

Corporate personality is the laws greatest invention. (2018, October 08). GradesFixer. Retrieved August 3, 2021, from https://gradesfixer.com/free-essay-examples/corporate-personality-is-the-laws-greatest-invention/
“Corporate personality is the laws greatest invention.” GradesFixer, 08 Oct. 2018, gradesfixer.com/free-essay-examples/corporate-personality-is-the-laws-greatest-invention/
Corporate personality is the laws greatest invention. [online]. Available at: <https://gradesfixer.com/free-essay-examples/corporate-personality-is-the-laws-greatest-invention/> [Accessed 3 Aug. 2021].
Corporate personality is the laws greatest invention [Internet]. GradesFixer. 2018 Oct 08 [cited 2021 Aug 3]. Available from: https://gradesfixer.com/free-essay-examples/corporate-personality-is-the-laws-greatest-invention/
copy to clipboard
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

    close

    Attention! This essay is not unique. You can get a 100% Plagiarism-FREE one in 30 sec

    Receive a 100% plagiarism-free essay on your email just for $4.99
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample
    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Your essay sample has been sent.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now
    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer
    exit-popup-close

    Haven't found the right essay?

    Get an expert to write you the one you need!

    exit-popup-print

    Professional writers and researchers

    exit-popup-quotes

    Sources and citation are provided

    exit-popup-clock

    3 hour delivery

    exit-popup-persone