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Assignment on the case of Salomon v Salomon & Co Ltd [1897]

Number of Words : 2025




This assignment is based on the following requirement – <br />"Salomon's case established the principle that control and management of a company remain distinct from its ownership. The courts do not look behind the corporate structure to see who really controls it, and, as a consequence, persons “behind” the company do not become personally liable for the company’s debts.”<br />"Law in Commerce”, Sweeney and O’Reilly, 3rd Edition at page 505.<br />Explain: - <br /> the concept of the company as a separate legal entity as illustrated by the decision in Salomon v Salomon & Co Ltd [1897] AC 22 and subsequent cases;<br /> the circumstances when the courts have been prepared to lift the veil of incorporation;<br /> whether you consider that the current state of the law in this area is fair to business operators who use the company structure to conduct their businesses, on the one hand, and to the creditors of those companies, on the other hand. If you consider that the current law is not fair, explain how it might be improved.<br />

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