Sunday, July 02, 2017

Lifting Up The Corporate Veil

Lifting Up The Corporate Veil

Company As A Separate Legal Entity

Section 9 of the Companies act 2013 deals with independent existence of the company. This section states that a company becomes a corporate body that is capable of functioning as an incorporate individual. An exceptionally good feature of the Companies act is that, it has independent corporate existence. Company in law is a person. It is distinct legal personality that is independent of its members. Therefore it is separate from its shareholders, directors, promoters etc. It is bestowed with the certain rights and is bound by duties. No person or member has a right to say that ‘This is my company.’ No one can become the owner of the company because the enterprise has its own separate entity. The principle of the company was lead down in the case of Salomon vs. Salomon and company.
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