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Topic: Mr Entitled is a director of an insurance company situated on the North Coast. It has recently been discovered that Mr Entitled has been depositing profits of the company into his own personal bank account. Mr Entitled has also been found making use of the company vehicle to go to the salon and spa and to go on dates with his fiancé. Mr Entitled denies every allegation made against him and insists that he is always acting in the best interest of the company. Consider the above scenario and answer the following questions:
Question 1) Discuss the concept of "separate legal personality" with reference to relevant case law and legislation.
Question 2 Is the conduct of Mr Entitled an abuse of the concept of separate legal personality? Provide reasons for your answer.
Question 3 What can courts do to prevent the abuse of the concept of "separate legal personality" of the company?
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