scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 7,021
The notion of separate legal entity and limited liability first created by the case Salomon v Salomon Co Ltd 1897 AC 22 had generated debates on whether an artificially formed entity should be granted the rights analogous to a natural person and more importantly permit those who own and control it to be immune from liability I evaluate and discuss the legal position regarding the above statement with reference to the Corporations Act 2001 and relevant cases Introduction 1 The decision of the House of Lords in Salomon v Salomon Co Ltd evinces the accuracy of Gooleys observation that the separate legal entity doctrine was a two-edged sword2 At a general level it was a good decision By establishing that corporations are separate legal entities Salomons case endowed the company with all the requisite attributes with which to become the powerhouse of capitalism At a particular level however it was a bad decision By extending the benefits of incorporation to small private enterprises Salomons case has promoted fraud and the evasion of legal obligations Nonetheless this article will argue that the overall balance is positive Salomon v Salomon 2 At its most general level the decision of the House of Lords in Salomon v Salomon Co Ltd was a good decision Salomons case is universally recognised as authority for the principle that a corporation is a separate legal entity3 3 The case firmly established that upon incorporation a new and separate artificial entity comes into existence At law a corporation is a distinct person with its own personality separate from and independent of the persons who formed it who invest money in it and who direct and manage its operations4 It follows that the rights and duties of a corporation are not the rights and duties of its directors or members who are most of the time obscured by a corporate veil surrounding the company5
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA