Seperate Corporate Personality

Question 1

Salomon v Salomon and Co ltd - facts of case

Answer 1

Boot manufacturer wanted to become company- memorandum with his family - he had all the shares, bar 6 and they were seen as separate legal personalities, he had a debenture of £10000 which he gave £5000 to Mr B however they had to be liquidated and only had £1055 at the end after paying off Mr B

Question 2

S v S - the problem

Answer 2

Was mr S separate from his company? Should he be given the remaining money as the only left secured creditors

Question 3

S v S - the answer

Answer 3

The courts intimately decided that Solomon would be entitled to that money as they were awperage legal persona, even tho it was a big scandal