Buy custom Piercing the corporate veil
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| Topic: |
Miscellaneous
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| Number of pages / Number of words: |
10 / 2741 |
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Nor are the subscribers as members liable, in any shape or form except to the extent and manner provided in the act."
The result of this was that Mr Salomon's debts were given priority. Also a legal person could be created by observing the tenets of company law. Furthermore this case created the Salomon principle, "The Veil of Incorporation...
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Also a legal person could be created by observing the tenets of company law. Furthermore this case created the Salomon principle, "The Veil of Incorporation." The courts will not go behind this wall to look at the controlling minds of the company except in certain circumstances.
The Corporate veil does not only apply to small companies, in 1991 the English Court of Appeal extended it to cover the complex scenario of a multinational corporation, where there is a parent controlling company, that works through a number of smaller subsidiaries...
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