Ghghjgjghjghjghjghjghjgh

The principle of law laid down in Salomon v Salomon & Co [1897] is not always applied. Give the facts of this case and experience its principle of law and discuss in detail when the coarse law will not take account of that principle. on that point is the only concept which prevailed in the case of Salomon vs Salomon & Co. The concept is cipher else but a company is dissociate from the sh ar carriers. It simply agent that the company is independent and separate from any other entities that are related to the company. Mr. Salomon had his own disdain of boot manufacturing. Since his children wanted to be a part of the worry as owners, Mr. Salomon sold his business to a new company (the company, he was planning to form) for a certain amount of money (40000 pounds). He sold his business to the new company as he knew that the company is separate legal entity. He needed 7 members (shareholders) to form that company. He had 5 children. 7 members were found: 5 children, 1 wife, and Mr. Salomon himself. So, he gave himself 20000 shares (1 pound each), 1 share to each child (total 5 shares for 5 children) and 1 share to his wife. He elected his twain children together with him to be the Directors of the company. Mr. Salomon became a shareholder. But the company thus far owes Mr. Salomon 20000 pounds.

So, The Company gives him debenture bonds of 10000 pounds and rest 10000 pounds were paid in cash. He is a shareholder in the company, and now, a debenture holder too. He was a director also. So, He is a shareholder, director and debenture holder. He was an ordinary shareholder who would be paid after all the creditors are paid if thither is liquidation of the company. But He was a debenture holder too. After 1 year, the company went into Liquidation and the creditors needed to be paid. The liquidator asked Mr. Salomon to pay all the creditors since Mr. Salomon was the owner of the company. Mr. Salomon did not conform to with that, because Mr. Salomon was supposed to pay for his debentures.... If you want to get a replete essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .