Corporations law

The veil of incorporation limits the personal liability of corporate directors, officers and employees for actions taken by the business. However, business owners can still be liable for business activities if they failed to follow corporate guidelines, commingled assets or acted recklessly (eHow,2015). The courts typically do not look behind the veil of incorporation if there a separate legal entity. But in certain circumstances, the court is willing to ‘lift the veil of incorporation’. The courts will lift the veil of corporation where the justice of the case demands or if the veil has been misused, this mean that a people who is controlling a company misused the veil to the prejudiced of creditors or third parties. The courts can lift the…

Introduction and Statement of Facts The fundamental attribute of corporate personality, from which all other consequences flow if that the corporation is a legal entity distinct from its members. Hence, it is capable of enjoying rights and of being subjects to duties which are not the same as those enjoyed or borne by its members. In other words, it has a “legal personality” and is often described as an artificial person in contrast with a human being, a natural person. However, corporate…

comply may render the directors or connected persons , including shadow directors, liable to account for any profit or loss to the company. In Smithton Ltd v Naggar , Court ruled that the person cannot be a shadow director since he did not wear the hat of the subsidiary’s director for the protested acts. 5.0 Conclusion This research paper is meant to demonstrate the evolution of laws in relation to shadow directors’ liabilities. Courts are imposing on shadow directors the fiduciary duties…

Majority principle”, in which the will of the majority of the members of the company should in general, prevails in the running of its business. For example if a majority does not want to take action, because the wrong doing director or directors control the majority votes, a minority of shareholders must show the facts fall within an exception to the rule in Foss v Harbottle. This is one of the most established principles in company law. There are three principles established in the case of…

Disclaimer: All characters and events depicted below are purely fictional. Any resemblance to a real person, living or dead is coincidental. However, this dialogue is a product placement for a real business enterprise. TARA-G Catering Services Characters: -STEVE OWOYOKUN, an undecisive maniac in his late 20s, easily agitated by unforeseen events, considers himself a scholastic democrat with high self-esteem and contemptuous gentility, most of all he relishes high-end delicacies. -MARK…

Lifting The Veil Of Incorporation and Situation Lifting the veil of incorporation is permitted when the person of the company are using the incorporation of the company to deliberately frustrate a legal obligation. A veil was described as a wall between the company and its shareholders. Hence, once a limited liability company is created as of the separate legal entity principle, the veil of incorporation will be created between the personal assets of the members and the assets of the company.…

If there is a will a personal representative, executor or trustee will be assigned to manage and administer the deceased shareholders estate (Streissguth, 2012). The personal representatives’ rights will be specified in the terms of the will. A will may also place certain restrictions on the transfer of shares that occur after the shareholders death. If a shareholder does not have a valid will, state laws will govern who will inherit the shares. The transfer procedure will begin in probate court…

non-for profit corporation formed a year ago in Delaware by its current CEO who is the majority owner and controls the company’s business. CIA is an online and classroom education organization that provides training to students in the United States auto industry, one of the country’s largest industries. Whereas, the majority of CIA’s income is from the online training courses, CIA did receive a retraining grant from the U.S. Department of Labor for the training they are currently providing…

dealings large corporations have when it comes to their workforce and unfair treatment of their workers. It also shows that while the form of slavery happening before the civil war was eradicated from our society, large corporations have found a workaround. This workaround is not acceptable in most social viewpoints but some people think it is ok. This modern form of slavery is just as bad as pre-civil war slavery and should be stopped. Some people may ask “does it really count as slavery?”…

fraud or corporate negligence that can have more devastating results from their actions upon a community, a corporation, even stock holders nationwide. Some steal pennies, while others out right take everything. Corporate fraud, a white collar crime has been legally dissected and evaluated for years. The use of corporate guidelines and government regulations has always been embedded into corporate legalities and business plans. The more modern concern is the safeguards and protocols set in place…