Theory of Corporate Personality | Company Law | Cases Saloman v. Saloman | Lee v. Lee

Corporate personality is the creation of law. And as per the law, a corporation is an artificial person created by the personification of a group of individuals. The theory of corporate personality mainly states that a company has a legal identity different from its member. Both English and Indian laws follow the concept of corporate personality.

For the first time, this concept was recognized in the year 1867 in the case of Oakes v. Turquand and Harding. But it was approved and firmly established in the leading case of Salomon vs. Salomon in which it was held that a company has its own personality which is different from the personalities of the individuals.

I. CASE STUDY: Salomon v A Salomon & Co Ltd:
Issue: Was the formation of Salomon’s company a fraud intended to defraud the creditors?
In this case, it established the concept of separate legal personality of a company that allowed shareholders to carry on trading with minimal exposure to the risk of personal insolvency in the event of a collapse.
Held: The court said that on incorporation, the company became an independent legal person and not an agent of Salomon. Salomon, as a debenture holder of the company, was ought to get priority in payment over the unsecured creditor.

II. CASE STUDY: Lee v. Lee’s Air Farming Ltd.
Issue: Was there a separate legal entity? Whether Mrs. Lee can claim compensation?
Held: Judicial Committee of the Privy Council also said that a company is a separate legal entity so that a director could still be under a contract of employment with the company he solely owned.

------------------

------------------

-----------------
Instagram Id: finologylegal

[mohamedabdulmajeed]

We, a group of law students from Kerala enjoyed your presentation as subtitles are in English. Please re arrange your previous and forthcoming videos with English titles. You are doing a great services to students community. Many of your lectures are very superior quality. We appreciate your very sincere presentation.
May Almighty Bless you. With best regards.
A group of children (15 students) from Kozhikode law college. University of Calicut.

[extraordinaryhere]

I find it so hard to understand this case from the book but now I don't have to look back at the book... I finally understood this case... 🥰🥰 Thank you ma'am

[malini]

Thank you so much for adding subtitles ❤️

[lavanyaaiyer]

Nice to see u teach company law :) kindly do a session on crpc

[RajKumar-mcvc]

Mam aapke padhane ka jo way hai wo superb hai..👍👌

[anuj]

I just came here to listen " hey everybody mein hun priya" ...I love the way you say it.

[foreversubhadip]

Thank you so much mam...You explained the topic in very simple language....I had many doubt regarding this topic..all are gone now....Thankz a lot mam :)

[aftabhasandotihal]

U have soo much changes since then to now, u have gained so much charm 😍

[Dikshuvashishtha]

Vow what a impression line se hi amazing ..omg ...itna intelligent nice explanation without hesitation.

[shanudubey]

mam how uh have this much of high knowledge...😮😮
... that's nice to see every case uh have explained awesome🔥🔥 now my dream is to get knowledge like uh mam🙏

[adityakumarchoudhary]

Ma'am you have magic in your hands m.. Barre se barra topic min to me hall ho jaata hai 😇

[yogeshchauhan]

That was a great explanation Big Sister, i mean the whole case has been explained in just one single minute 😯, incredible 👏 loved it 😍🥰

[manurastogi]

Your videos are very knowledgeable and make it easy for non legal background students. Great work mam.

[sweethome]

Ma'am, for RBI legal officer exam one needs to have good knowledge on company law, Labour law, FEMA, FERA, SARFAESI and other like laws.. please please please ma'am, suggest me some books and sources for these topics. I do not have any idea about these subjects. And thank you for such a knowledgeable videos... you are a good teacher.. thank you mam. Your videos are very helpful

[Lawlantern-gppr]

Hello ma'am u r just fabulous, the way u teach is really nice we students are been very fascinated of your teaching.
But ma'am i have an request, that is please make videos on topic Common Law and Civil Law, their differ, concept etc.

[tanishkasoni]

Aapki explanation se jitta aata tha vo bhi bhul gyi mam
Thank you 😢

[MrAB-xcdu]

Zabardast kindly make a list of all similar leading cases/Case laws so student can easily clear concept.

[srinivasanarayanan]

Thank you for posting video on company law . And post videos on income tax act, sale of goods act, indian contract act.

[manishagarwal]

The excellent way of teaching, Ms Priya. Hats off to u

[arjungejage]

Priya ji aapka teach karne ka tarika behtar hai❤❤