Separate Legal Personality and Limited Liability: Foundations of Modern Company Law
Separate legal personality and limited liability are foundational principles of modern company law, establishing that a corporation exists independently from its shareholders and that their financial risk is limited to their investment. This legal structure encourages entrepreneurship, investment, and economic growth by protecting personal assets and enabling perpetual succession. While these doctrines promote efficiency and expansion, courts may pierce the corporate veil in cases of fraud, undercapitalization, or failure to follow corporate formalities.… Read more