Salomon v. A Salomon & Co Ltd [1897]
[1897] AC 22 · House of Lords · United Kingdom
Summary
Foundational corporate personality case.
Facts
A sole trader incorporated a company and became a secured creditor of it.
Issue
Was the company a separate legal person from its shareholder?
Held
Yes. Properly incorporated companies have separate legal personality.
Ratio Decidendi
A corporation is a separate legal person from its shareholders.
Reasoning
The Companies Act requirements were met, so the corporate form had legal effect.
Significance
Foundational corporate personality case.
Related Cases
No related cases listed.
Exam Tips
Review the ratio and reasoning before applying this case in problem questions.