Lifting The Corporate Veil

The separate legal personality of a limited liability company has been established since the end of the 19^th century. The case Salomon v. A. Salomon & Co.[1897] A.C. 22 is considered as the trademark case which led to the establishment of this principle allowing companies to act independently from their shareholders and obtain assets which are considered as independent assets from those of the shareholders.

As a result, a shareholder in the company is not responsible for the actions of the company and the company itself is not responsible for the actions of its shareholder. In addition, the company and its members keep separate assets and the assets of the members are not assets of the company and vice versa. Furthermore, a creditor can not request the personal liability of the shareholders in case there is a claim against the company.