The Evolution of the Separate Legal Personality Doctrine and Its Exceptions: A Comparative Analysis

Abstract

This article endeavours to explore issues involving corporate legal personality from a jurisprudential angle by raising questions such as what is being recognised, what legal rights flow from this recognition, and what is the nature of the legal capacity. This requires an understanding of the theories associated with corporations and consequently the need and type of state regulation. By comparing the laws in America, England and India, the article examines when a company's legal personality is ignored and when the veil is lifted or pierced. It is not merely about disregarding the corporate personality, but also about imposing just and reasonable limitations on the exercise of the privilege of independent capacity. The policies behind recognition of a separate existence must be balanced against the policies justifying piercing the veil, and these issues will be dealt with in this article.

Note: "(2011), The Company Lawyer: 37(7), (c), Sweet & Maxwell and Sneha Mohanty and Vrinda Bhandari, available via http://www.westlaw.com".

Keywords: Comparative Law, Corporate Personality, India, Legal History, Legal Personality, United States, Salomon, Separate Legal Personality

JEL Classification: K2