This document discusses the concept of corporate personality in jurisprudence. It defines a corporation as an artificial person in law that can have rights and duties and hold property. There are three conditions for a corporation: a group of people associated for a purpose, organs through which it functions, and a legal will attributed to it. There are two types of corporations - aggregate and sole. The corporate veil can be lifted in cases of fraud, improper conduct, tax evasion, or activities against public policy to determine the true character behind the legal entity. A corporation sole represents a public office held by successive individuals where the legal personality continues between holders.

1. JURISPRUDENCE
CORPORATE
PERSONALITY
Nemil Shah
Roll No.49, 2nd Year,
BSLS, Faculty of Law,
The M. S. University of Baroda

2.  A Corporation is an artificial person enjoying in Law
capacity to have rights and duties and holding
property.
 There must be three conditions :
 Firstly, there must be a group or body of human beings
associated for a certain purpose;
 Secondly, there must be organs through which the corporation
functions;
 Thirdly, the corporation is attributed will by legal functions.
 There are two types of Corporation :
 Corporation Aggregate
 Corporation Sole

3.  A corporation aggregate is an association of human
beings united for the purpose of forwarding their
certain interest.
 For certain reasons company has an independent
existence from those of its members. It is for this
reason that the company may become insolvent but
its members may still rich and wealthy.

4.  Where the legal entity of the company is being used for
fraudulent and dishonest purpose, the individuals concerned
will not be allowed to take the shelter behind the corporate
personality.
 The corporate veil of a company may be lifted to ascertain
the true character and economic realities behind the legal
personality of the company. This may be disregarded in the
following cases :
1. Where the corporate personality has been used for fraud or
improper conduct, the courts have lifted the veil and looked
at the realities.
2. The corporate veil of the company may be lifted where its a
corporate facade is in reality only an agency.

5. 3. Corporate veil may be lifted where the company is engaged
in activities which are against the public policy.
4. For determining the real character and status of the
company, the court may ignore its separate entity and lift the
corporate as held in Daimler Co. Ltd. V. Continental Tyre &
Rubber Company.
5. Where the corporate facade of the company has been used
for evasion of taxes or duties.
6. Where it is found that the sole purpose of the formation of
the new company was to use it as a device to avoid or reduce
payment of bonus to workers, the Supreme Court pierced
into the corporate veil to look into the real transaction.
7. The courts have sometime lifted the corporate veil in quasi-
criminal cases relating to companies in order to look behind
the legal person and punish the real persons who have
violated the law.

6.  Corporation sole is an incorporated series of successive
persons.
 Corporation sole are the holders of a public office which
are recognised by law as corporation. The chief
characteristic of a corporation sole is its “continuous entity
endowed with a capacity for endless duration”.
 In corporation sole single person holding the public office
holds the office in a series of successions means his
rights, liabilities and property do not extinguish but they
are vested in the person who succeeds him. So after the
death of the person his natural personality is destroyed but
legal personality continues to be represented by the
successive person.