Chapter 1, Problem 14.2EC

What does it mean for a company to be a legal person and what does it mean for owners of a company to have limited liability? Use an example to compare the liability of owners of two companies, one with limited liability and one without limited liability.

What is the significance of Salomon v A Salomon & Co Ltd [1897] AC 22? What is the ‘corporate veil’ and when is it permitted to be lifted under the Corporations Act?

What are the differences in whether a limited liability company is member-managed or manager-managed? Does the election of one form of management create a difference in the fiduciary duties of members of a limited liability company? Explain your answer.