Kapeesh Law Chambers

  Introduction   The doctrine of separate legal entity is a cornerstone of corporate law. Established in the landmark case of Salomon v A Salomon & Co Ltd (1897), this principle dictates that a company is distinct from its shareholders and directors. However, there are situations where courts "pierce" or "lift" the corporate veil to hold individuals accountable for the company’s actions. The concept of removing the corporate veil is a legal remedy invoked in circumstances involving fraud, malfeasance, or where justice demands it.   This article delves into the modern evolution of this doctrine, analyzing recent cases and judicial trends that shed light on when and how the corporate veil can be lifted.     The Principle of Corporate Veil   In Salomon v Salomon, the House of Lords reinforced the notion that a company enjoys a distinct legal identity. Mr. Salomon, a boot manufacturer, transferred his business to a newly formed company in wh...

Introduction In the realm of business partnerships, a "sleeping partner," also known as a "silent partner," refers to an individual who invests capital into a partnership but does not take an active role in managing the business. Unlike active partners who are involved in the daily operations and decision-making processes, a sleeping partner's involvement is primarily financial. Despite their lack of participation in the day-to-day running of the business, sleeping partners play a crucial role by providing the necessary capital, which can be vital for the growth and stability of the partnership. Rights of a Sleeping Partner 1. Right to Profits: A sleeping partner is entitled to a share of the profits generated by the business. This share is typically proportional to their investment in the partnership, as agreed upon in the partnership deed or agreement. 2. Right to Information: Although they do not actively manage the business, a sleeping partner has the right ...