Sec 30(2), S30 (5)-Publication of Co’ s name
INTRODUCTION Sec 18
EFFECTS OF INCORPORATION 6 effects
STATUTORY Sec 540(1) - involves in fraudulent trading
INCORPORATION AND ITS EFFECTS
Separate legal entity (S20) -Solomon v Solomon & Co Ltd Lee v Lee’s Air Farming Ltd
Limited liability of shareholders (S192) - Re Application by Yee Yut Ee -Doubles Acres Sdn Bhd v Tiara Sdn Bhd
JUDICIAL
S541-Misappropriation of money
Sec 133(2)-dividends are paid out of capital
When co.is a shame or mere façade concealing the true facts. -Wolfson v Strathclyde Regional Council -Adam v Cape Industries Plc.
When the court is asked to promote justice or exercise equitable discretion.
When the co. used to evade legal obligations/commit fraud. -Gilford Motor v Horne -Jones v Lipman -Re Darby
-Aspatra Sdn Bhd v BBMB -Yap Sing Hock v PP
Perpetual Succession (S20) -Re Noel Tedman Holding Pty Ltd -Tan Lai v Mohamed b Mahmud
Common seal & control and management
Sec 539(3) & 540(2) –debts contracted at the time company unable to pay.
LIFTING THE CORPORATE VEIL
Ability to own property (S21 (b)) -Macaura v Northen Assurance Co -Perman Sdn Bhd v European Commodities
Ability to sue and be sued -Foss v Harbottle
Sec 186- prohibits the allotment of shares unless the minimum subscription
When a group of the companies in reality a single unity. -Hotel Jaya Puri Bhd v National Union of Hotel, Bar & Restaurant -National Union of Hotel, Bar & Restaurant workers v Hotel Malaya Sdn Bhd.
When co. employed as an agent or alter ego of its controller. -Smith, stone & Knight Ltd v Birmingham Corp.