Adams v Cape Industries

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  • November 11, 2012 at 10:06 am #55188
    Avatar of hamzaharoon
    hamzaharoon
    Participant

    Hi Sir, I Understood the facts of this case but decision of court of Appeal is confusing me because of treating subsidiaries as separately legal entities rather then group one, Please do explain?

    November 11, 2012 at 11:20 am #106988
    Avatar of MikeLittle
    MikeLittle
    Keymaster

    A company is a separate legal entity. Companies within a group are still separate legal entities. Consolidated accounts are prepared by the parent incorporating the financial position and the results of the parent and all its subsidiaries but …… all the subsidiaries are STILL separate legal entities

    And the Court of Appeal agree!

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