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Law 200

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Submitted By nahidahmed
Words 3514
Pages 15
NORTH SOUTH UNIVERSITY
Summer 2014
Assignment Topic
“The Company at Law is Distinct from its Members. Directors are neither Agents nor Trustees of the Company”

Prepared For
Barrister Shaheen Ahmed
Lecturer
School of Business
North South University
Prepared By
Shahriar Hasnaine Sakib
ID- 111 0261 030
LAW 200
Section: 07
Date of Submission
July 15, 2014

Contents
TABLE OF CONTENTS
Objective 3
Introduction 3
Company’s Classification and Characteristics 3
Separate legal personality 4
Consequences of treating the company as a separate legal entity: 5
Company has a Distinct Entity from its Members 6
Agent & Trustee 6
Directors 6
Analysis to the Leading Cases 7
Salomon v. Salomon & Co. 7
Lee and Lee’s Air Farm’s Ltd 8
Macaura v. Northern Assurance Co Ltd 8
DHN v Tower Hamlets London Borough Council 9
Lubbe v Cape Plc [2000] 9
Some Other Famous Cases: 10
Paul v. Virginia (1869) 10
Berkey v. Third Avenue Railway Co 10
Adams v Cape Industries plc [1990] 10
Walkovszky v. Carlton 10
Findings 11
Conclusion 11
Bibliography 12

Objective
‘’A company is distinct from its members. Directors are neither agents nor trustees of a company’’ The purpose of this Assignment is to analyze the legendary statement made by Lord Mac Naughton during the Salomon vs Salomon case on corporate personality, in the lights of some leading cases. The statement of Lord Mac Naughton was “The Company is at law a different person altogether from its members, the company is not in law agent of the subscribers or to the trustees of them”.
Introduction
A company is a legal entity that is separate and distinct from its members and shareholders and can act as a single person. When a company is formed, it is said to have become "incorporated". However there were several controversies about the company’s entity. Question was being raised that, ‘does it have a

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