Roskill LJ observed in The Albazero  AC 774: “… each company in a group of companies … is a separate legal entity possessed of separate legal rights and liabilities so that the rights of one company in a group cannot be exercised by another company in that group … It is perhaps permissible under modern commercial conditions to regret the existence of those principles. But it is impossible to deny, ignore or disobey them.”
Do you agree with this judicial statement? Critically analyse the judicial statement above.
End of Question Hint: Your answer must also include discussion on the current legal treatment of corporate groups with reference to the common law in Australia and the Corporations Act 2001 (Cth). You are not expected to discuss the facts or issues in the case above.
Note: Superficial answers (merely based on issue-recognition or simply quoting large chunks from books or articles), inadequate consideration of all the critical issues raised by the question (uncritical legal analysis) will attract a superficial mark. A synopsis (executive summary), at the outset, of no more than 100 words is recommended. Marks will be deducted for poorly structured answers (illogical or incoherent answers), absence of proof-reading the paper before submission or failure to follow instructions in the writing style guide (available at Moodle). Students are expected to draw upon (and not merely cite in bibliography) relevant content and references in the prescribed textbook (ACL 5th edition, lexisNexis 2016) to enhance the quality of your answer and mark. Remember, this is a research assignment; therefore there is a reasonable expectation for appropriate research articles identified in your prescribed textbook to be drawn upon in an appropriate manner.
Note: An impressive list of articles in your bibliography, without sufficient evidence of
appropriate use or understanding, will not impress your assessor.
*Additional notes to writer*
– Please use footnotes for referencing