This is clearly in line with the principle of lifting of the corporate veil the realist theory, founded by german jurist, johannes althusius has been most prominently advocated by otto von gierke according to this theory, a legal person is a real personality in an extra juridical and pre-juridical sense of the word. Theories on corporate personality: real or fictitious introduction the decision of house of lords in salomon v a salomon & co ltd had a lasting influence in corporation. Theories of corporate personalities by akshay khanna but this theory does not apply to corporate sole because collective will is necessary for form a real & psychic personality hence this theory states that aggregate personality has similar features as a human personality.
The fiction of corporate personality is introduced for the purpose of bestowing the character and features of individuality on a collective and changing body of men. Theories on corporate personality: real or fictitious introduction the decision of house of lords in salomon v a salomon & co ltd had a lasting influence in corporation law.
Another important theory worth noting is kelsen‟s theory of corporate personality according to kelsen, personality is “only a technical personification of a complex of norms, a focal point of imputation which gives unity to certain complexes of rights and duties. Group personality theory or realist sociological theory – this theory was propounded by johannes althusius and carried forward by otto van gierke this group of theorists believed that every collective group has a real mind, a real will and a real power of action.
Majority of the principal jurisprudence theories on corporate personality contended that the legal entity of the corporation is artificial the fiction, concession, symbolist and purpose theories supported the contention that existence of corporation as a legal person is not real. Theories on corporate personality: real or fictitiousintroduction the decision of house of lords in salomon v a salomon & co ltd had a lasting influence in corporation law it is often credited with the principle of separate legal entity of the corporation distinct from the members. Theories of corporate personality : fiction theory : this theory was put forward by von savigny, salmond, coke, blackstone, and holland etc according to this theory, the personality of a corporation is different from that of its members.
Theories of corporation personality: there are many writers who argue that a corporation has a physical existence having its own will or mind on the other hand, there are jurists who consider the personality of a corporation a mere myth or fiction.
Legal persons are real or imaginary beings to whom personality is attributed by law by way of fiction where it does not exist in there are various theories of corporate personality which have attempted to theorize the nature and authority of it do not extinguish but they are vested in the person who succeeds him meaning thereby that with. According to this theory, juristic personality is only a symbol to facilitate the working of the corporation only the members of the corporation are persons in true sense & around them a bracket is put to indicate that they r to be treated as one unit, when they have formed themselves into a corporation. Corporate personality and the doctrine of some real thing though it is not necessary for law to personify, since the law might, 211 state trading corporation of india v commercial tax officer, air 1963 sc 1811 77 the first class of legal persons consists of corporations, namely those which.
Corporate personality the legal use of the word ‘person' has attracted an assortment of theories which is probably second to none in volume ‘person' in law, is both the recognition of an entity as well as the acknowledgement of such an entity's rights and interests.