Exam (elaborations)
LLB Notes Company Law - Lifting the Corporate Veil
- Module
- Company Law
LLB Notes Company Law - Lifting the Corporate Veil
[Show more]
Seller
Follow
Content preview
Lifting the Corporate VeilWho can lift the veil? - ANS Only the courts can lift the veil.
When? - ANS Can occur if director's abuse the principle of limited liability.
Statutory Basis - ANS s47 - failure to state the company's name correctly.
Correct name must appear on cheques etc.
Signatory will be personally liable if the company defaults.
SB - Fraudulent/Reckless Trading - ANS S610 - Court can declare a person
responsible for debts.
Privilege of limited liability cannot be used as a cloak to operate a fraudulent system.
SB - Proper Books of Account - ANS S609 - if proper books are not kept and this
contributed to the financial position, the director may be personally liable.
SB - Civil Penalties - ANS S210 - declaration of solvency is falsely made/without
reasonable grounds.
Director may be found liable.
S859 - ANS If a breach of a disqualification or restriction order is placed on directors,
director may be personally liable.
Enforcement of Judgment - ANS S53 - Veil may be lifted to enforce legal judgments
against officers, where the company has wilfully disobeyed the judgment.
Criminal Responsibility - ANS Statutes include provisions which make officers
criminally liable when the company commits an offence.
DPP v Rosberry Construction Ltd.
Misuse of the Corporate Form - ANS Evading existing legal obligations.
Cummins v Stewart - ANS Defendant had licence agreement which required him to
pay royalties.
Attempted to avoid this by transferring the licence to a separate company.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller janetlaw09. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now