Salomon v/s Salomon & Co. (1897) AC is a case on which of the following concept of jurisprudence ?
Salomon v. Salomon & Co. Ltd. (1897) established that a duly incorporated company is a legal person separate from its members, even where one person holds almost all the…
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Salomon v/s Salomon & Co. (1897) AC is a case on which of the following concept of jurisprudence ?
Answer and explanation
Correct answer A
Salomon v. Salomon & Co. Ltd. (1897) established that a duly incorporated company is a legal person separate from its members, even where one person holds almost all the shares. Salomon was therefore not personally liable for the company's debts, and as a secured creditor he could even rank ahead of its unsecured creditors.
It is the leading case on corporate personality, not on conspiracy, financing or corporate morality.
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