Question
The company is at law a different person altogether from the subscribers to the memorandum. Per Lord Mcnaghten in Salomon v Salomon & Co
"The company is at law a different person altogether from the subscribers to the memorandum." Per Lord Mcnaghten in Salomon v Salomon & Co Ltd [1897] AC 22.
With reference to the above passage, explain the principle of separate legal entity of a company and the exception to the principle. Support your answer with provisions of the Companies Act 2016 and relevant cases.
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Fundamental Accounting
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit
7th Edition
9781485112112
