Salmon V Salmon

29.Introduction? 30.The decision of the House of Lords in Salomon v Salomon & Co Ltd [1] evinces the accuracy of Gooleys observation that the intermit well-grounded entity doctrine was a two-edged sword.[2] At a general level, it was a trustworthy decision. By establishing that smokes are separate legal entities, Salomons case gift 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? 31.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 entity.[3] 32.The case firmly effected that upon incorporation, a new and separate artificial entity comes into existence. At law, a corporation is a distinct person with its own temper separate from and independent of the persons who formed it, who invest money in it, and who direct and manage its operations.

[4] 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 bury surrounding the company.[5] 33.The recognition that a corporation is a separate legal entity in its own right is the foundation of modern font corporate law: MacLaine Watson & Co Ltd v Department of sell and Industry.[6] Indeed [e]very system of law that has attained a veritable degree of maturity seems compelled by the ever increasing complexness of human affairs to create persons who are not men....[7] tenacious with this observation, Arnold states that [o]ne of the essential and central notions which give our industrial feudalism logical... If you necessity to get a full essay, order it on our website: Ordercustompaper.com

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