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21-Jul-2020 14:37

The ‘corporate veil’ surrounds the company of Murphy & Co Ltd and prevents outsiders challenging the operation of the company.However, although the principle of separation is central to company law, there are a number of situations when the company and its members can be identified together and treated as the same.

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In a sole proprietorship or partnership, the owners personally liable.He had not transferred the insurance policy to the company. After the sale, Macaura continued to insure the plantation in his own name. When Macaura attempted to claim on the policy, the company refused to pay.The issue was whether Macaura had an insurable interest at the time of the loss.For all intents and purposes, all acts taken by these two company types are taken by the owners themselves.

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The company becomes a legal person in its own right, distinct from the This was seen in the famous case of Salomon v Salomon & Co Ltd (1897).

Mr Salomon owned 20,000 £1 shares, and his wife and five children owned one share each.



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