This thesis involves an exploration of separate personality, limited liability and their exceptions within 'the UK and China. Both practical experience from history and academic literature indicate that separate personality and limited liability are best treated as essential rules for accelerating economic development. They overweigh other alternative rules in most circumstances. However; due to the disadvantages of separate personality and limited liability, extreme employment of both can induce abusive activities, which ultimately deter economic development. In order to guarantee the appropriate usage of separate personality and limited liability, occasional exceptions to separate personality and limited liability are necessary.