Answer to Question #245087 in Economics for Matome

Question

1

A company is regarded to have a separate legal entity under the new Companies Act

71 of 2008.This means that the company can transact, contract, sue and be sued in

its own name. Historically, directors and shareholders would hide under the company

for any fraudulent activities or transactions by relying on the separate juristic

personality. The courts have developed a doctrine which disregards this separate

juristic personality.

1.1. Name and briefly define the doctrine developed by the courts to disregard the

separate juristic personality (5)

1.2. With reference to case law fully discuss the common law purpose and the

scope of doctrine.

Answer 1

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