Salomon v a salomon and co ltd [ 1897] ac 22 case summary. the requirements of correctly constituting a limited company. separate legal personality ( slp) is the basic tenet on which company law is premised. this case is one of the most famous cases that students have to study when it comes to company law because of separate corporate personality. this case is also known as salomon v a salomon & co ltd. case summary | salomon v salomon case summary | salomon v s salomon case summary | study salomon v salomon short summary. an analysis of law case study of salomon v salomon & co analysis. based on understanding of separate legal entity and salomon vs salomon case study opinion on this case. salomon’ s case has become a landmark company case law vs in the uk and is often vs cited in most cases within the area of company law. the principle established in salomon vs. salomon & co ltd has stood the vs test of time, given that this doctrine has formed the basis of company law ( puig ). the case also created legal liability against the corporation instead of an individual person.
salomon involved the salomon family, who owned the majority of shares in a leather company, according to the national archives of the united kingdom. after a strike, the business lost profits and went bankrupt. mr salomon was study a shoemaker in england. his sons wanted to become his business partners so he converted his business into a limited company ( a salomon & co ltd). a salomon & co ltd purchased mr salomon’ s business for above market value. his wife and his five children study became subscribers. the two eldest sons became directors of the company. spread the loveyou can study grab other case briefs on corporate law from here. facts: mr salomon had incorporated his long standing personal business of shoe manufacture into a limited company. he held 20, 001 shares and the other 6 members of his family each got one share making a total of 20, 007 shares.
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the effect of the house of lords' unanimous ruling was to uphold firmly the doctrine of corporate personality, as set out in the companies act 1862, so that creditors of an insolvent company could not sue the company' s shareholders to pay up outstanding debts owed.