/
24.10.2015 at 12:00 am
Cuttings

Salomon v Salomon is Antiquated

Our courts shouldn't apply Salomon v Salomon so strictly.

I've seen injustice done beacuse the courts hold on too dearly to the authorities made in Salomon's wake.

All the more so with companies whose sole shareholders are also its sole directors, and where the companies are just legal vessels as a front, rather than a genuine use of the separate entity principle.

Some reasons:

  1. That case is antiquated. It's 119 years old. It doesn't account for the sophisticated and wrongful acts knowingly perpetrated by directors/shareholders in modern times.

  2. It's unsuited to Malaysia. I know people who avoid doing business with Malaysians whenever they can. Business here is too relationship-based (which is the same anywhere, but our law enforcement is particularly weak), and contracting parties don't always honour their contracts (much less gentlemen's agreements).

  3. Legal fiction is not reality. Businessfolk cheat sometimes. And a defence based on the separate legal personality of companies is a defence based on a fundamental legal fiction, which when applied carelessly, enables cheating.


Filed under:
#
Words: 176 words approx.
Time to read: 0.70 mins (at 250 wpm)
Keywords:
, , , , , , , , ,

Other suggested posts

  1. 04.07.2021 at 09:08 am / Learning D3 with P5/Processing
  2. 16.12.2017 at 12:00 am / When Defying Simplicity
  3. 09.07.2016 at 12:00 am / The Lawgiving Coder
  4. 08.02.2016 at 12:00 am / Eye to Eye (Jonathan Young's Version)
  5. 06.09.2015 at 12:00 am / Big Illegal Guns
  6. 19.07.2015 at 12:00 am / Deadened Demonyms
  7. 26.12.2013 at 12:00 am / Teal Stares
  8. 21.07.2012 at 12:00 am / Hunted By GLaDoS
  9. 15.03.2012 at 12:00 am / Cel-Shaded Arena
© Wan Zafran. See disclaimer.