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QUESTION:
"Companies are said to be an artificial legal person."
Your answer must include a discussion of the following:- Discuss the legal basis of the statement- Explain the Salomon v A Salomon And Co Ltd [1897] AC 22 case. How is this case incorporated in the Corporations Act 2001 (Cth)?- The future of company law (e.g. do think this view will change?)- Whether you think changes are necessary in the current law
Verified Expert
The company is said to be an artificial person created by law who have its separate legal entity, perpetual succession and a common seal, which means the company has the right to sue its members and members can also sue the company. Salmon v Salmon ltd case is discussed in which judgment was given in favor of his being sole proprietorship, and in the last views regarding the current law and the changes to overcome them are given.
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