Case Salomon V Salomon And Co Ltd

1618 Words Nov 26th, 2015 7 Pages
Introduction
The principle upheld in the case Salomon v Salomon & Co Ltd[ Salomon v Salomon Co. Ltd [1897] AC 22.] runs like a foundation throughout the entirety of company, no only in the area of the UK, but also in any areas which are aiming to found a developed system of company law. In this paper, we will talk about the principles established from Salomon v Salomon & Co Ltd[ Salomon v Salomon [n 1].] and the exceptions to this principle with relevant judicial decisions and statutory provisions.

Principles in the Salomon case
As we know, the registered company, which is a legal body in its own right and has a separate legal identity from its owners, enjoys many advantages. The company has its distinct legal personality and its unique name, so it can sue or be sued and own its property in its own name. The company also has the separation of ownership from control, which means the liability of the company is separated from owners and the owners only need to be liable for the amount they invested in the business. In addition, it’s easy for registered company to be financed and the registered company can be always succeeded[ Lecture slides from Omotolani Somoye and Kemi Adebowale (16 October 2015).]. These advantages can be concluded as separate personality as well as limited liabilities and be used in the case of Salomon. Salomon’s company was validly constituted. According to the requirement of the Companies Act 1862, there should be as least seven shareholders, but the…
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