In Salomon Case Which Is the Principal Fact That Was Put Forward in Order to Exclude the Legal Personality?

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1. In Salomon case which is the principal fact that was put forward in order to exclude the legal personality?

To exclude the legal personality, the principal fact that was put forward was that Mr. Salomon was personally responsible for the debts as the company was a mere agent of Mr. Salomon and that the company was fraudulently constituted in order to limit his liability. Yet, the company met all the requirements and all the shareholders were informed of the company’s management and approved of its actions. Therefore, under the terms of the Companies Act 1862, the company was not a mere agent as there were multiple shareholders even if the other shareholders did not have majority voting power.

2. What is the difference between entity shielding and limited liability?

Entity shielding is to protect the company and its assets in case of default by a shareholder. Limited liability is a provision to protect the personal assets of the shareholders in case the company goes bankrupt or defaults on its obligations.

3. What does corporate law principally aim to protect?

Corporate law aims to protect the independence of businesses as a legal entity and an artificial person. It aims to protect the following characteristics of a corporation.

(1) legal personality, (2) limited

1. In Salomon case which is the principal fact that was put forward in order to exclude the legal personality?

To exclude the legal personality, the principal fact that was put forward was that Mr. Salomon was personally responsible for the debts as the company was a mere agent of Mr. Salomon and that the company was fraudulently constituted in order to limit his liability. Yet, the