Lifting the corporate veil free essay sample

The recognition that a company is a separate legal entity distinct from its shareholders is often expressed as the â€Å"veil of incorporation†. General principle, once a company is incorporated, the courts usually do not look behind the veil to inquire why the company was or who really controls it. However in certain situations, the court will ignore the separate legal personality of a company and look to the members/controllers of the company is â€Å"lifting the veil†. This would involve treating the right or liabilities or activities of the company as the rights or liabilities or activities of its shareholders, for example treating the business od a company as that of its principal shareholder. Lifting the corporate veil is something expressly authorised by statute (statutory exceptions) and something it is adopted by the courts (judicial exception). STATUTORY EXCEPTIONS -When members become less than 2. Companies Act 1956 states that â€Å"if at any remaining member has 6 months to find another member, after which the court will lift the corporate veil and hold the sole member liable for all debts of the company† Exceptions in this case: (a) If the sole member was not aware that he was the only remaining member; or (b) The sole member is a holding company owning the entire shares of the company concerned (a wholly owned company). We will write a custom essay sample on Lifting the corporate veil or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page If an officer of a company signs or issue or authorises the signing or issuance of certain instruments on behalf of the company, on which the company’s name does not appear properly -Section 121(2) Companies Act 1956 states that â€Å"such officer will be personally liable† The name of the company must appear in letters on all bill of exchange, promissory notes, cheques, negotiable instrument, endorsements and orders. If the name of the company is not properly mentioned on any of these documents, the person who signed or issued the document is liable to the holder of the document for the amount due, unless the company pays upon the instrument. -If the company carries on its business for a fraudulent purpose: Section 304(1) and (5) Companies Act 1956 states that â€Å"where any business of the company has been carried put with intent to defraud creditor of the company, the court may make the persons who were knowingly a party to the fraudulent trading may be personally liable for debt or other liabilities of the company†. At the time when a debt is contracted on behalf of a company, the officer of the company had no reasonable expectation that the company would be able to pay the debt: Section 303 (3) and 304(2) Companies Act 1956 states that â€Å"such officer will be personally liable†. In other word, that officer may be guilty of an offence and on conviction, he may be liable to pay of the whole or any part of the debt so contracted. -Transactions by a company which have the effect of avoiding or evading tax: Section 140(1) o Companies Act the Income Tax Act 1967 states that â€Å"give the right the Director-General of Inland Revenue to lift the corporate veil†

Writing Essay Topics For Your Essay

Writing Essay Topics For Your EssayIf you are looking for the best and worst college essay topics, it is time to wake up. The problem is that some topics are going to be better than others. However, there are some key things that you must remember to write your best and worst essay topics. So get out there and start writing!The first thing you have to do is know the things that will be included in your topics. You don't want to write an essay topic with all of the things that you had not researched. If you don't make sure that the items that you include in your essay topics are going to fit the scope of your assignment, then you are not going to get much out of it.Now that you know what your college essay topics are going to be, you should now go out and look around for topics that are going to be on top of the list. The best thing to do would be to simply pick a topic that you think you are most comfortable with. If you do this, then you are most likely going to have a much easier t ime writing a topic that is going to fit in with your entire subject.The next thing that you want to do when you are writing your best and worst college essay topics is to put a little bit of yourself into it. Some topics are going to be about personal information, while others are going to be about your personality. While you are writing this particular topic, you want to remember to include some of your own personal experience in your essay.When you are going to be putting together a topic about your personal experiences, be sure that you use the experiences that you have had as a way to put your thoughts into words. Don't try to overdo it with the personal information and then make it seem like you are trying to impress someone else. Make sure that itis a topic that you can write about as you see fit.The last thing that you want to do is to write in such a way that you can use your own experiences as a way to make you stand out from all of the other students. Also, this will allo w you to add some of your personal opinions about the topics that you are going to be writing about. Remember that one of the things that college professors look for is the things that you can contribute to the discussion and the ideas that you can offer about the subjects that you are going to be writing about.These are the three things that you need to remember when you are looking at the best and worst college essay topics. One, you need to remember to use your own experiences to help you put your thoughts into words, and two, you need to include your own personal opinions about the topics that you are going to be writing about. Remember that this is going to be about you, and it is going to be about you thinking out loud as you are writing.