Legal personality and the corporate veil

Topic preview

1. 01

   Company as separate person

   Say the core rule in one sentence: who is the legal person after incorporation, and who owns the shares?

2. 02

   When veil piercing fails

   Give two reasons why a court will usually refuse to ignore the company’s separate personality, even if creditors suffer loss.

3. 03

   Rare veil-piercing cases

   State the kind of situation where veil-piercing may be considered, and keep it to the rare, exceptional cases rather than ordinary commercial failure.

4. 04

   Personal liability routes

   List the main non-veil routes by which an individual may still be personally liable, including contract, guarantee, and statute.

5. 05

   Directors and personal claims

   If a client asks whether being a director automatically protects them from personal claims, what is the correct short answer and what caveat must follow?

6. 06

   Creditor recovery checks

   In a creditor-risk scenario, what facts would you check first to see whether the creditor can pursue an individual rather than only the company?

7. 1 more building block

   The full topic unlocks with FLK1 Playbook, including the remaining prompts and answer-key marking.