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    Week - 9 Answer

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    Yusef Shaqeel
    The Saloman v A Saloman & Co Ltd case from 1897 established the doctrine of corporate personality under UK law. This doctrine, originating from the Companies Act of 1862, established that the creditors of a bankrupt company cannot pursue the company's shareholders to pay debts or liabilities. A company incorporated under the law is treated as a separate legal entity, with its members considered separate from the company. The case affirmed the principle of separate legal identity for limited companies, with the company able to sue and be sued using its own name and assets rather than those of its shareholders.

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    Week - 9 Answer

    Uploaded by

    Yusef Shaqeel
    19 views1 page
    The Saloman v A Saloman & Co Ltd case from 1897 established the doctrine of corporate personality under UK law. This doctrine, originating from the Companies Act of 1862, established that the creditors of a bankrupt company cannot pursue the company's shareholders to pay debts or liabilities. A company incorporated under the law is treated as a separate legal entity, with its members considered separate from the company. The case affirmed the principle of separate legal identity for limited companies, with the company able to sue and be sued using its own name and assets rather than those of its shareholders.

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    Week-9_Law

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    The Saloman v A Saloman & Co Ltd case from 1897 established the doctrine of corporate personality under UK law. This doctrine, originating from the Companies Act of 1862, established that the creditors of a bankrupt company cannot pursue the company's shareholders to pay debts or liabilities. A company incorporated under the law is treated as a separate legal entity, with its members considered separate from the company. The case affirmed the principle of separate legal identity for limited companies, with the company able to sue and be sued using its own name and assets rather than those of its shareholders.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19 views1 page

    Week - 9 Answer

    Uploaded by

    Yusef Shaqeel
    The Saloman v A Saloman & Co Ltd case from 1897 established the doctrine of corporate personality under UK law. This doctrine, originating from the Companies Act of 1862, established that the creditors of a bankrupt company cannot pursue the company's shareholders to pay debts or liabilities. A company incorporated under the law is treated as a separate legal entity, with its members considered separate from the company. The case affirmed the principle of separate legal identity for limited companies, with the company able to sue and be sued using its own name and assets rather than those of its shareholders.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Week – 9

    Answer:
    The Saloman versus A Saloman & Co Ltd (1897) AC 22 is the law case of UK company. The
    importance of the case is to know the doctrine of corporate personality which comes from the
    companies Act 1862, this explains creditors of any bankrupt company cannot claim for any's
    shareholders to pay the liability or outstanding debts. If the company is incorporated then it will
    be a separate legal entity. Its members will be considered as disjointed, their liability will be
    limited too. The main significance of the case is it gave the reason to the separate entity
    principle, a limited company will be a legal entity or it will not be so. Whenever company will
    sue it will use its name and its assets not of its shareholders.

    The corporate veil is a legal term that explains that there is a difference between the personality
    of the corporation and the personalities of shareholders, and this saves them as a different
    personality who is not liable for the company's debts and other obligations. It is a legal decision
    to deal in a way that the rights and duties of a company are the rights and duties of shareholders
    too. The corporate veil is always lifted when the legal position of the company and the case of
    corporate body is ignored. The other case is when the members of the firm are found to be a part
    of any fraud or improper conduct.

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