CHALLENGES IN THE APPLICABILITY OF THE PRINCIPLE OF SEPARATE LEGAL ENTITY IN SINGLE SHAREHOLDER COMPANIES: A COMPARATIVE ANALYSIS BETWEEN TANZANIA AND INDIA
This article examines the principle of separate legal entity, offering a concise yet thorough analysis of its application within the Tanzanian corporate framework. Anchored in the landmark case Salomon v A. Salomon & Co. Ltd (1897), the paper explores the doctrinal significance and judicial interpretation of corporate personality as it pertains to Tanzanian companies. It further undertakes a comparative assessment of how this principle operates in the context of Single Shareholder Companies in Tanzania and One Person Companies in India. By highlighting the legal and practical divergences between the two jurisdictions, the study identifies gaps in Tanzania’s implementation of the corporate personality doctrine and proposes targeted reforms to enhance its efficacy.
Keywords: Separate legal entity, corporate personality, judicial interpretation and Applicability, Corporate personhood principle
