At the moment of incorporation a company becomes a legal entity and attains its main feature, separate legal personality which entails in company’s own assets that are separated from shareholders’ assets. Furthermore, limited company also attains a feature of limited liability. All of those principles are of exceptional importance for the modern day business world, however they can be misused by shareholders and can consequently cause many costs for other parties involved in company’s businesses. In order to prevent such occurrences, Slovenian Companies Act in article 8 contains a provision named "disregard of legal personality". On this basis court disregards separate legal personality of a company and imposes personal liability on shareholders for company’s liabilities. Case law is, however, very reluctant towards disregarding a legal personality, mainly due to importance of above mentioned principles. The thesis presents some possible changes for the usage of this provision and analyses that the principle of separate legal personality is disregarded in other provisions of Companies Act and also in other law areas, more often than it seems. This shows that all of those principles, that are essential in modern business world, must be used in balance to pursue both effective and just business operating.
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