Question

The case of Salomon v A Salomon & Co Ltd established a number of principles. Which One of the following was NOT a principle established in Salomon case?

• A. That a person who owns the vast majority of a companys shares is to be regarded as the principal of the company or that the company is trustee for his benefit.
• B. That a companys promoters, directors and member could legitimately use corporate personality to shield themselves from certain liabilities.
• C. That the minimum member requirement does not require the members to be active.
• D. None of the above

Answer 1

Answer: (D)

None of the above

In the case of salomon vs salomon & co ltd the principle was that the company had the legal existence in the eyes of the law and so creditor and shareholder can joint their personal assets for setting off losses