The question (15 marks)
"Once a company is duly incorporated it must be treated like any other independent person." Examine this statement, and discuss the circumstances in which the courts and the legislature will look behind the corporate personality. (15 marks)
MU Module 1, corporate personality and lifting the corporate veil.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 1 · Incorporation, Prospectus and Securities of Company Law.
Authorities you will need
- Salomon v. Salomon & Co., Ltd. (1897) A.C. 22 (H.L.)
- Lee v. Lee's Air Farming, Ltd. (1960) 3 All E.R. 420
- Daimler Co., Ltd. v. Continental Tyre and Rubber Co. (G.B.), Ltd.
- In re Sir Dinshaw Maneckjee Petit
- Gilford Motor Co., Ltd. v. Horne (1933) 1 Ch. 935
- Workmen v. Associated Rubber Industry Ltd. (1985) 4 SCC 114
- Subhra Mukherjee v. Bharat Coking Coal Ltd. (2000) 3 SCC 312
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.