BUS2 365 Lecture Notes - Lecture 5: John Paul Stevens, Work Function, Insurable Interest
5 Mar 2018
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The nature of the corporation (b) the corporation as a legal person. Overview: corporate personality: general propositions, corporate personality: theoretical basis, corporate personality: consequences, corporate personality: consequences, corporate personality: veil piercing. Legal personality as privilege: corporations do not have the right to operate as a legal personality for private purposes. It is up to the state to provide/revoke through jurisdictional statutes. Federal interpretation act s. 29: for every legislative reference to persons, corporations are considered persons (unless the particular statute excludes them) Salomon v salomon (1897 - house lords: facts: mr. salomon is sole proprietor (leather merchant) who incorporated his business. Salomon, his wife and children are shareholders in this new corporation. He only gave one share to the other members. There was a debenture (promissory note - promise to pay) secured by corporate assets. He was to issue the debenture as a personal loan, which meant that his personal creditor would enjoy priority of interest.
