TABLE OF CONTENTS
Marking scheme........................................................................................i
Turnitin Report.........................................................................................ii
Introduction...............................................................................................1
Importance of separate legal entity..........................................................2
Lifting veil of corporation.........................................................................4
Conclusion..................................................................................................7
References..................................................................................................8

Introduction
In Malaysia, the legislation governing the formation and operation of companies is the Companies Act 1965. Section 14(1) of the Companies Act 1965 states that company are incorporated under the law which begins with the two or more people association as they use their names to become the subscriber in memorandum and all requirement of the registration are complied. Hence, then the company is formed, then it’s called “incorporated”.
After being issued with a certificate of incorporation, a company has a legal status separate from the members. In law, the company is treated as a person. Whatever happen in the company, the members of the company should not receive any impact as it was distinguished from company. Wrong done to the company may be vindicated by the company. The most important decision ever made by the English courts in relation to separate legal entity was adopted in the case of Salomon v Salomon[1897] and also accepted in Malaysian company law.
In this case, Salomon was sole proprietor who runs the business of a boot merchant by himself. He later converted his business into limited