Jurgita Grigiene

The Concept of a Legal Person in the Case Salomon v. Salomon

The aims of the lesson is to present landmark case Salomon v. Salomon & Co Ltd. In this case the main principles of a legal entity are established. House of Lords established separate assets of a company. If the company is duly established so it’s incorporation is legal. The motives of the incorporation is irrelevant. The shareholders of the company are not liable for the debt of the company. The creditors were aware that they deal with the limited liability company but not private person.