Simon Vs Solomonian Case Study
932 Words 4 Pages
The purpose of doing this case study is to explain the application of corporate veil in the corporate legal environment. It is one of the controversial areas. The concept of corporate veil is applicable to the public companies which says that the legal person is different from its company. There are many considerations which are regarded while determining the factors whether the Court can lift up the corporate veil. Solomon vs. Solomon is a famous case for determining the case for lifting up the corporate veil. Nowadays the above principle is used when there is unjust to the third parties. Most of the limited companies apply this rule to separate personality. If the corporate veil is lifted then the limited liability is lost and the Court may impose personal fines and penalty on the directors and the management of the companies.
Piercing the corporate veil or lifting the corporate veil is a legal concept where the right and liabilities of the companies are treated as the right and liabilities of the shareholders. A Corporation or company is known as a separate legal person from its shareholder and they have to pay the debts which are on them. But if the court finds that the company business is not conducted with the corporate legislation (if there is illegals activities done) then the court may held