Doctrine of Corporate Legal Entity



Dr.Lim start up the Clinic business in 2005, the business is grow up due to the good services provide by this clinic . At 2007, Dr.Lim own the Hospital Tawaka due to the extension of his business .Giving the name of hospital as Tawaka Behad . Unfortunately , at the year 2008 Dr.Lim attack from stroke , and doctor  advise him to retire and have more rent in the house . Due he health problem and the case Dr.lim don't have any children . At year 2009 ,DR. Lim sold the hospital Tawaka to SIME behad .The worker form Tawaka  protest to have more benefit  due to the change of shareholder . the point is whether a not the change in company share holder will cause the change in company structure?

In case of Sime behad with  worker from Tawaka hospital . It's similar to the case of " abdul aziz bin Atan v ladang rengo malay eastate SDN. BHD. According to the company act 1965,  incorporated company is legal separate entity from his shareholder and employee  . The change of company shareholder will not cause in  company structure  . So Tawaka worker have no right  to claim for more benefit from the new shareholder  .

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