Remedying abuses of limited liability in company groups

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dc.contributor.advisorStoop, Helenaen_ZA
dc.contributor.authorSmit, Aninaen_ZA
dc.date.accessioned2016-07-26T12:21:02Z
dc.date.available2016-07-26T12:21:02Z
dc.date.issued2016en_ZA
dc.description.abstractIn 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.identifier.apacitationSmit, 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/11427/20790en_ZA
dc.identifier.chicagocitationSmit, 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/11427/20790en_ZA
dc.identifier.citationSmit, A. 2016. Remedying abuses of limited liability in company groups. University of Cape Town.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
dc.identifier.urihttp://hdl.handle.net/11427/20790
dc.identifier.vancouvercitationSmit 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/11427/20790en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDepartment of Commercial Lawen_ZA
dc.publisher.facultyFaculty of Lawen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherCommercial Lawen_ZA
dc.titleRemedying abuses of limited liability in company groupsen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameLLMen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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