Remedying abuses of limited liability in company groups

 

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dc.contributor.advisor Stoop, Helena en_ZA
dc.contributor.author Smit, Anina en_ZA
dc.date.accessioned 2016-07-26T12:21:02Z
dc.date.available 2016-07-26T12:21:02Z
dc.date.issued 2016 en_ZA
dc.identifier.citation Smit, A. 2016. Remedying abuses of limited liability in company groups. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/20790
dc.description.abstract In the modern world, company groups have become a commercial reality. With increasing regulatory and compliance requirements for different industries, larger companies are often more optimally managed in a group structure. The individual companies within a group structure still operate in the economic interest of the group as a whole. Despite this reality, company law has strictly upheld the separate legal personality of individual companies within a group. As a result of this separate legal personality, the holding company of the group cannot be held liable for its subsidiaries obligations. This creates room for abuse, especially since the holding company is able to control which obligations may be incurred by the subsidiaries in the first instance. This paper will discuss some of the abuses and possible unintended consequences of extending separate legal personality and limited liability to companies operating within a group. The author will seek to evaluate the common law remedy for piercing the corporate veil as a possible remedy against these abuses. The statutory remedy for piercing the corporate veil under section 20(9) of the Companies Act will similarly be evaluated. The research will conclude that these remedies do not consider the unique policy and economic realities of company groups and therefore are not adequate to address the abuse which may occur in company groups. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Commercial Law en_ZA
dc.title Remedying abuses of limited liability in company groups en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Law en_ZA
dc.publisher.department Department of Commercial Law en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname LLM en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Smit, A. (2016). <i>Remedying abuses of limited liability in company groups</i>. (Thesis). University of Cape Town ,Faculty of Law ,Department of Commercial Law. Retrieved from http://hdl.handle.net/11427/20790 en_ZA
dc.identifier.chicagocitation Smit, Anina. <i>"Remedying abuses of limited liability in company groups."</i> Thesis., University of Cape Town ,Faculty of Law ,Department of Commercial Law, 2016. http://hdl.handle.net/11427/20790 en_ZA
dc.identifier.vancouvercitation Smit A. Remedying abuses of limited liability in company groups. [Thesis]. University of Cape Town ,Faculty of Law ,Department of Commercial Law, 2016 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/20790 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Smit, Anina AB - In the modern world, company groups have become a commercial reality. With increasing regulatory and compliance requirements for different industries, larger companies are often more optimally managed in a group structure. The individual companies within a group structure still operate in the economic interest of the group as a whole. Despite this reality, company law has strictly upheld the separate legal personality of individual companies within a group. As a result of this separate legal personality, the holding company of the group cannot be held liable for its subsidiaries obligations. This creates room for abuse, especially since the holding company is able to control which obligations may be incurred by the subsidiaries in the first instance. This paper will discuss some of the abuses and possible unintended consequences of extending separate legal personality and limited liability to companies operating within a group. The author will seek to evaluate the common law remedy for piercing the corporate veil as a possible remedy against these abuses. The statutory remedy for piercing the corporate veil under section 20(9) of the Companies Act will similarly be evaluated. The research will conclude that these remedies do not consider the unique policy and economic realities of company groups and therefore are not adequate to address the abuse which may occur in company groups. DA - 2016 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2016 T1 - Remedying abuses of limited liability in company groups TI - Remedying abuses of limited liability in company groups UR - http://hdl.handle.net/11427/20790 ER - en_ZA


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