177Corporations and
legal personality
Topic list Syllabus reference
1 Sole traders' and companies' legal identities D3(a)
2 Limited liability of members D3(b)
3 Types of company D3(c)
4 Additional classifications D3(c)
5 Effect of legal personality D3(d)
6 Ignoring separate personality D3(e)
7 Comparison of companies and partnerships D3(a)
e
Introduction
Companies, as business vehicles, are distinct from sole traders and
partnerships. The key difference between them is the concept of separate legal
personality. This chapter outlines this doctrine, and also discusses its
implications (primarily limited liability for members) and the exceptions to it
(lifting the veil of incorporation).
The Companies Act 2006 applies to this and all chapters up to and including
Chapter 20 unless otherwise stated.