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In Daimler Co. Ltd. v. Continental Tyre & Rubber Co., (1916) 2 A.C. 307, the House of Lords laid down that a company will be regarded as having an "enemy character" if:
Answer & Solution
Correct answer: D.
1. Lesson 1 reproduces the Daimler rule.
2. The test is de facto control: persons controlling the company's affairs must be resident in or acting under enemy direction.
3. Mere shareholding nationality or location of the registered office is not enough to attribute enemy character to a body corporate.
4. The doctrine is one of the principal judicial heads under which the corporate veil is lifted.
_Source: ICSI CS Executive Paper 2 (Company Law) — Lesson 1: Introduction to Company Law, pp. 2-35._
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