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Mr. Aron Salomon converted his boot and shoe manufacturing business into a limited company. He owned 20,001 of the company's 20,007 shares while family members each held one share. When the company went into liquidation due to financial difficulties, creditors argued the company was a sham. However, the House of Lords upheld the separate legal identity of the company, finding no evidence of fraud, and ruled that creditors could only seek repayment from the company's assets, not Mr. Salomon personally. This established that a company is a separate legal entity from its shareholders.

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SOLOMON Vs SOLOMON & CO.LTD.(1897)A.C.22 03/05/10 11:21 Ghanshyam IILM Gurgaon

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Conclusion ,[object Object],03/05/10 11:21 Ghanshyam IILM Gurgaon

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1. SOLOMON Vs SOLOMON & CO.LTD.(1897)A.C.22 03/05/10 11:21 Ghanshyam IILM Gurgaon

10. 03/05/10 11:21 Ghanshyam IILM Gurgaon

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