Case Law: Doctrine of Corporate Legal Entity - Salomon

SALOMON v. SALOMON &CO. LTD.

In this case, we learnt that Salomon owned a large portion of the total shares of Salomon & Co. Ltd. Though to the general public this seems as though Salomon owns this company, but in the eyes of the law, Salomon is only running Salomon & Co. Ltd. Hence even when being sued, he is safe from it since there are other share holders (his family). This case was brought up when the company went into liquidation.


More info about the Solomon case can be found at http://www.murdoch.edu.au/elaw/issues/v7n3/puig73a_text.html

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