SlideShare ist ein Scribd-Unternehmen logo
1 von 10
Downloaden Sie, um offline zu lesen
Salomon vs. Salomon
BY:
Syed Junaid Ali Shah
Outline of Salomon vs. Salomon
• Background
• Facts of Salomon vs. Salomon
• Characteristics of a company
• Conclusion
Background
• Aaron Salomon was a successful leather merchant who specialized
in manufacturing leather boots. For many years he ran his business
as a sole trader.
• By 1892, his sons had become interested in taking part in the
business. Salomon decided to incorporate his business as a Limited
company, Salomon & Co. Ltd.
Background
• At the time the legal requirement for incorporation was that at
least seven persons subscribe as members of a company i.e. as
shareholders. Mr. Salomon himself was managing director.
• Mr. Salomon owned 20,001 shares of the total 20,007 shares
• The remaining six were shared individually between the other six
shareholders (wife, daughter and four sons).
• Mr. Salomon sold his business to the new corporation for almost
£39,000, of which £10,000 was a debt to him.
Facts of Salomon vs. Salomon
• High Court:
In the High Court, Mr Salomon lost the case and was ordered
to pay the debts. This decision was founded in the idea that the
company was his nominee or agent.
• The appeal:
Mr Salomon appealed the decision, where he once again lost
the case.
Characteristics of a Company
• Separate Legal Entity:
The company is distinct and different from its members in
law. It has its own seal and its own name, its assets and liabilities
are separate and distinct from those of its members.
• Limited Liability:
He liability of the members of the company is limited to
contribution to the assets of the company up to the face value of
shares held by him.
Characteristics of a Company
• Perpetual Succession:
Membership of a company may keep on changing from time
to time but that does not affect life of the company. Insolvency or
Death of member does not affect the existence of the company.
• Separate Property:
The company's property is its own. A member cannot claim
to be owner of the company's property during the existence of the
company.
Characteristics of a Company
• Transferability of Shares:
Shares in a company are freely transferable.
• Common Seal:
A company is an artificial person and does not have a physical
presence. Thus, it acts through its Board of Directors for carrying
out its activities and entering into various agreements.
Conclusion
• There is no doubt that the decision in Salomon’s case established
the separate legal personality of a company, allowing shareholders
to carry on trading with minimal exposure to the risk of personal
insolvency in the event of a collapse
• This is largely due to the fact that this is an area where case facts
and personal views of judges have a bearing on the outcome.
Salmon vs. Salomon

Weitere ähnliche Inhalte

Was ist angesagt?

Lifting the Corporate Veil
Lifting the Corporate Veil Lifting the Corporate Veil
Lifting the Corporate Veil Radhika Gohel
 
Solomon vs Solomon
Solomon vs Solomon Solomon vs Solomon
Solomon vs Solomon usman ali
 
Lifting up of corporate veil
Lifting up of corporate veilLifting up of corporate veil
Lifting up of corporate veilMritunjay Sengar
 
Lifting the veil of corporate personality
Lifting the veil of corporate personalityLifting the veil of corporate personality
Lifting the veil of corporate personalityDr. Arun Verma
 
Lifting of corporate veil
Lifting of corporate veilLifting of corporate veil
Lifting of corporate veilAmandeep Kaur
 
Historical development of company law
Historical development of company lawHistorical development of company law
Historical development of company lawRadhika Gohel
 
Difference between Companies Act 1956 and 2013
Difference between Companies Act 1956 and 2013Difference between Companies Act 1956 and 2013
Difference between Companies Act 1956 and 2013Aaditya Nagpal
 
Company As Seprate Legal Entity
Company As Seprate Legal EntityCompany As Seprate Legal Entity
Company As Seprate Legal EntityMatti Rehman
 
Balfour v/s Balfour
Balfour v/s Balfour Balfour v/s Balfour
Balfour v/s Balfour Prachi Porwal
 
The Formation of a Company in Bangladesh
The Formation of a Company in BangladeshThe Formation of a Company in Bangladesh
The Formation of a Company in BangladeshRafiqul Alam Khan
 
Lifting the Corporate Veil ~ Enemy Character
Lifting the Corporate Veil ~ Enemy CharacterLifting the Corporate Veil ~ Enemy Character
Lifting the Corporate Veil ~ Enemy CharacterSayanMukherjee70
 
Doctrine of ultravires
Doctrine of ultraviresDoctrine of ultravires
Doctrine of ultraviresMohit Garg
 
Lifting Corporate Veil Company Law 1
Lifting Corporate Veil Company Law 1Lifting Corporate Veil Company Law 1
Lifting Corporate Veil Company Law 1Irwan John Imbayan
 

Was ist angesagt? (20)

Lifting the Corporate Veil
Lifting the Corporate Veil Lifting the Corporate Veil
Lifting the Corporate Veil
 
Solomon vs Solomon
Solomon vs Solomon Solomon vs Solomon
Solomon vs Solomon
 
Lifting up of corporate veil
Lifting up of corporate veilLifting up of corporate veil
Lifting up of corporate veil
 
Lifting the veil of corporate personality
Lifting the veil of corporate personalityLifting the veil of corporate personality
Lifting the veil of corporate personality
 
Lifting of corporate veil
Lifting of corporate veilLifting of corporate veil
Lifting of corporate veil
 
Corporate veil
Corporate veilCorporate veil
Corporate veil
 
Historical development of company law
Historical development of company lawHistorical development of company law
Historical development of company law
 
Difference between Companies Act 1956 and 2013
Difference between Companies Act 1956 and 2013Difference between Companies Act 1956 and 2013
Difference between Companies Act 1956 and 2013
 
Company As Seprate Legal Entity
Company As Seprate Legal EntityCompany As Seprate Legal Entity
Company As Seprate Legal Entity
 
Corporate personality
Corporate personalityCorporate personality
Corporate personality
 
Balfour v/s Balfour
Balfour v/s Balfour Balfour v/s Balfour
Balfour v/s Balfour
 
The Formation of a Company in Bangladesh
The Formation of a Company in BangladeshThe Formation of a Company in Bangladesh
The Formation of a Company in Bangladesh
 
Company law ppt
Company law pptCompany law ppt
Company law ppt
 
Lifting the Corporate Veil ~ Enemy Character
Lifting the Corporate Veil ~ Enemy CharacterLifting the Corporate Veil ~ Enemy Character
Lifting the Corporate Veil ~ Enemy Character
 
The company law
The company lawThe company law
The company law
 
Company law
Company lawCompany law
Company law
 
Company law
Company lawCompany law
Company law
 
Doctrine of ultravires
Doctrine of ultraviresDoctrine of ultravires
Doctrine of ultravires
 
partnership
 partnership partnership
partnership
 
Lifting Corporate Veil Company Law 1
Lifting Corporate Veil Company Law 1Lifting Corporate Veil Company Law 1
Lifting Corporate Veil Company Law 1
 

Ähnlich wie Salmon vs. Salomon

Lab ii project work
Lab ii project workLab ii project work
Lab ii project workparag374203
 
Salomon vs A Salomon & Others Ltd Case- Corporate Law.pptx
Salomon vs A Salomon & Others Ltd Case- Corporate Law.pptxSalomon vs A Salomon & Others Ltd Case- Corporate Law.pptx
Salomon vs A Salomon & Others Ltd Case- Corporate Law.pptxKHURRAMWALI
 
corporate law (CL) Under company act 2013
corporate law (CL) Under company act 2013corporate law (CL) Under company act 2013
corporate law (CL) Under company act 2013kabul university
 
Lecture 3 slides
Lecture 3 slidesLecture 3 slides
Lecture 3 slidesLeahHolmes
 
Under the concept of separate legal entity
Under the concept of separate legal entityUnder the concept of separate legal entity
Under the concept of separate legal entityFAROUQ
 
Solmon uncle
Solmon uncleSolmon uncle
Solmon uncleusman ali
 
Sole Proprietorship - Partnership - Corporation Advantages And Disadvantages
Sole Proprietorship - Partnership - Corporation Advantages And DisadvantagesSole Proprietorship - Partnership - Corporation Advantages And Disadvantages
Sole Proprietorship - Partnership - Corporation Advantages And DisadvantagesZunair Bhatti
 
FORMS_OF_BUSINESS_16.ppt
FORMS_OF_BUSINESS_16.pptFORMS_OF_BUSINESS_16.ppt
FORMS_OF_BUSINESS_16.pptDjhxcXhuxuc
 
Advantage and Veil of Company Law
Advantage and Veil of Company LawAdvantage and Veil of Company Law
Advantage and Veil of Company LawDeliriumTooHigh
 
Law incorporation of companies
Law incorporation of companiesLaw incorporation of companies
Law incorporation of companiesAdil Shaikh
 
Companies Act IGSIR.pdfddfffffffsdfggggggggf
Companies Act IGSIR.pdfddfffffffsdfggggggggfCompanies Act IGSIR.pdfddfffffffsdfggggggggf
Companies Act IGSIR.pdfddfffffffsdfggggggggfAayush77601
 
M1 T1Introduction to Company.pdf
M1 T1Introduction to Company.pdfM1 T1Introduction to Company.pdf
M1 T1Introduction to Company.pdf18014MAYURIVYAS
 
Corporate ownership structure
Corporate ownership structureCorporate ownership structure
Corporate ownership structureAffaq Akram
 
Limited Liability
Limited LiabilityLimited Liability
Limited Liabilitytutor2u
 
OneStart 2015 London Bootcamp: Niall McAlister, Olswang - The Cradle to Grave...
OneStart 2015 London Bootcamp: Niall McAlister, Olswang - The Cradle to Grave...OneStart 2015 London Bootcamp: Niall McAlister, Olswang - The Cradle to Grave...
OneStart 2015 London Bootcamp: Niall McAlister, Olswang - The Cradle to Grave...Oxbridge Biotech Roundtable
 
Company law - nature.pptx
Company law - nature.pptxCompany law - nature.pptx
Company law - nature.pptxDeepikaKapoor41
 

Ähnlich wie Salmon vs. Salomon (20)

Lab ii project work
Lab ii project workLab ii project work
Lab ii project work
 
Salomon vs A Salomon & Others Ltd Case- Corporate Law.pptx
Salomon vs A Salomon & Others Ltd Case- Corporate Law.pptxSalomon vs A Salomon & Others Ltd Case- Corporate Law.pptx
Salomon vs A Salomon & Others Ltd Case- Corporate Law.pptx
 
corporate law (CL) Under company act 2013
corporate law (CL) Under company act 2013corporate law (CL) Under company act 2013
corporate law (CL) Under company act 2013
 
Lecture 3 slides
Lecture 3 slidesLecture 3 slides
Lecture 3 slides
 
Under the concept of separate legal entity
Under the concept of separate legal entityUnder the concept of separate legal entity
Under the concept of separate legal entity
 
Solmon uncle
Solmon uncleSolmon uncle
Solmon uncle
 
Slides1.pptx
Slides1.pptxSlides1.pptx
Slides1.pptx
 
Sole Proprietorship - Partnership - Corporation Advantages And Disadvantages
Sole Proprietorship - Partnership - Corporation Advantages And DisadvantagesSole Proprietorship - Partnership - Corporation Advantages And Disadvantages
Sole Proprietorship - Partnership - Corporation Advantages And Disadvantages
 
FORMS_OF_BUSINESS_16.ppt
FORMS_OF_BUSINESS_16.pptFORMS_OF_BUSINESS_16.ppt
FORMS_OF_BUSINESS_16.ppt
 
Advantage and Veil of Company Law
Advantage and Veil of Company LawAdvantage and Veil of Company Law
Advantage and Veil of Company Law
 
Law incorporation of companies
Law incorporation of companiesLaw incorporation of companies
Law incorporation of companies
 
Company law
Company lawCompany law
Company law
 
Unit 2 business
Unit 2 businessUnit 2 business
Unit 2 business
 
3. ownership structure
3. ownership structure3. ownership structure
3. ownership structure
 
Companies Act IGSIR.pdfddfffffffsdfggggggggf
Companies Act IGSIR.pdfddfffffffsdfggggggggfCompanies Act IGSIR.pdfddfffffffsdfggggggggf
Companies Act IGSIR.pdfddfffffffsdfggggggggf
 
M1 T1Introduction to Company.pdf
M1 T1Introduction to Company.pdfM1 T1Introduction to Company.pdf
M1 T1Introduction to Company.pdf
 
Corporate ownership structure
Corporate ownership structureCorporate ownership structure
Corporate ownership structure
 
Limited Liability
Limited LiabilityLimited Liability
Limited Liability
 
OneStart 2015 London Bootcamp: Niall McAlister, Olswang - The Cradle to Grave...
OneStart 2015 London Bootcamp: Niall McAlister, Olswang - The Cradle to Grave...OneStart 2015 London Bootcamp: Niall McAlister, Olswang - The Cradle to Grave...
OneStart 2015 London Bootcamp: Niall McAlister, Olswang - The Cradle to Grave...
 
Company law - nature.pptx
Company law - nature.pptxCompany law - nature.pptx
Company law - nature.pptx
 

Kürzlich hochgeladen

The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...Operational Excellence Consulting
 
Implementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxImplementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxRich Reba
 
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...PRnews2
 
Paul Turovsky - Real Estate Professional
Paul Turovsky - Real Estate ProfessionalPaul Turovsky - Real Estate Professional
Paul Turovsky - Real Estate ProfessionalPaul Turovsky
 
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...ssuserf63bd7
 
Ivey Leveraging Information Technology MBA 2024
Ivey Leveraging Information Technology MBA 2024Ivey Leveraging Information Technology MBA 2024
Ivey Leveraging Information Technology MBA 2024Nihal Nishadul
 
Rakhi sets symbolizing the bond of love.pptx
Rakhi sets symbolizing the bond of love.pptxRakhi sets symbolizing the bond of love.pptx
Rakhi sets symbolizing the bond of love.pptxRakhi Bazaar
 
MEP Plans in Construction of Building and Industrial Projects 2024
MEP Plans in Construction of Building and Industrial Projects 2024MEP Plans in Construction of Building and Industrial Projects 2024
MEP Plans in Construction of Building and Industrial Projects 2024Chandresh Chudasama
 
Andrii Rodionov: What can go wrong in a distributed system – experience from ...
Andrii Rodionov: What can go wrong in a distributed system – experience from ...Andrii Rodionov: What can go wrong in a distributed system – experience from ...
Andrii Rodionov: What can go wrong in a distributed system – experience from ...Lviv Startup Club
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamArik Fletcher
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSendBig4
 
Driving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerDriving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerAggregage
 
Darshan Hiranandani (Son of Niranjan Hiranandani).pdf
Darshan Hiranandani (Son of Niranjan Hiranandani).pdfDarshan Hiranandani (Son of Niranjan Hiranandani).pdf
Darshan Hiranandani (Son of Niranjan Hiranandani).pdfShashank Mehta
 
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdfSherl Simon
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreNZSG
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfJamesConcepcion7
 
Roman Kyslyi: Використання та побудова LLM агентів (UA)
Roman Kyslyi: Використання та побудова LLM агентів (UA)Roman Kyslyi: Використання та побудова LLM агентів (UA)
Roman Kyslyi: Використання та побудова LLM агентів (UA)Lviv Startup Club
 
Neha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and CareerNeha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and Careerr98588472
 
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptxGo for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptxRakhi Bazaar
 

Kürzlich hochgeladen (20)

The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
 
Implementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxImplementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptx
 
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
Introducing the AI ShillText Generator A New Era for Cryptocurrency Marketing...
 
Paul Turovsky - Real Estate Professional
Paul Turovsky - Real Estate ProfessionalPaul Turovsky - Real Estate Professional
Paul Turovsky - Real Estate Professional
 
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
 
Ivey Leveraging Information Technology MBA 2024
Ivey Leveraging Information Technology MBA 2024Ivey Leveraging Information Technology MBA 2024
Ivey Leveraging Information Technology MBA 2024
 
Rakhi sets symbolizing the bond of love.pptx
Rakhi sets symbolizing the bond of love.pptxRakhi sets symbolizing the bond of love.pptx
Rakhi sets symbolizing the bond of love.pptx
 
WAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdfWAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdf
 
MEP Plans in Construction of Building and Industrial Projects 2024
MEP Plans in Construction of Building and Industrial Projects 2024MEP Plans in Construction of Building and Industrial Projects 2024
MEP Plans in Construction of Building and Industrial Projects 2024
 
Andrii Rodionov: What can go wrong in a distributed system – experience from ...
Andrii Rodionov: What can go wrong in a distributed system – experience from ...Andrii Rodionov: What can go wrong in a distributed system – experience from ...
Andrii Rodionov: What can go wrong in a distributed system – experience from ...
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management Team
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.com
 
Driving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerDriving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon Harmer
 
Darshan Hiranandani (Son of Niranjan Hiranandani).pdf
Darshan Hiranandani (Son of Niranjan Hiranandani).pdfDarshan Hiranandani (Son of Niranjan Hiranandani).pdf
Darshan Hiranandani (Son of Niranjan Hiranandani).pdf
 
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource Centre
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdf
 
Roman Kyslyi: Використання та побудова LLM агентів (UA)
Roman Kyslyi: Використання та побудова LLM агентів (UA)Roman Kyslyi: Використання та побудова LLM агентів (UA)
Roman Kyslyi: Використання та побудова LLM агентів (UA)
 
Neha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and CareerNeha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and Career
 
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptxGo for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
 

Salmon vs. Salomon

  • 2. Outline of Salomon vs. Salomon • Background • Facts of Salomon vs. Salomon • Characteristics of a company • Conclusion
  • 3. Background • Aaron Salomon was a successful leather merchant who specialized in manufacturing leather boots. For many years he ran his business as a sole trader. • By 1892, his sons had become interested in taking part in the business. Salomon decided to incorporate his business as a Limited company, Salomon & Co. Ltd.
  • 4. Background • At the time the legal requirement for incorporation was that at least seven persons subscribe as members of a company i.e. as shareholders. Mr. Salomon himself was managing director. • Mr. Salomon owned 20,001 shares of the total 20,007 shares • The remaining six were shared individually between the other six shareholders (wife, daughter and four sons). • Mr. Salomon sold his business to the new corporation for almost £39,000, of which £10,000 was a debt to him.
  • 5. Facts of Salomon vs. Salomon • High Court: In the High Court, Mr Salomon lost the case and was ordered to pay the debts. This decision was founded in the idea that the company was his nominee or agent. • The appeal: Mr Salomon appealed the decision, where he once again lost the case.
  • 6. Characteristics of a Company • Separate Legal Entity: The company is distinct and different from its members in law. It has its own seal and its own name, its assets and liabilities are separate and distinct from those of its members. • Limited Liability: He liability of the members of the company is limited to contribution to the assets of the company up to the face value of shares held by him.
  • 7. Characteristics of a Company • Perpetual Succession: Membership of a company may keep on changing from time to time but that does not affect life of the company. Insolvency or Death of member does not affect the existence of the company. • Separate Property: The company's property is its own. A member cannot claim to be owner of the company's property during the existence of the company.
  • 8. Characteristics of a Company • Transferability of Shares: Shares in a company are freely transferable. • Common Seal: A company is an artificial person and does not have a physical presence. Thus, it acts through its Board of Directors for carrying out its activities and entering into various agreements.
  • 9. Conclusion • There is no doubt that the decision in Salomon’s case established the separate legal personality of a company, allowing shareholders to carry on trading with minimal exposure to the risk of personal insolvency in the event of a collapse • This is largely due to the fact that this is an area where case facts and personal views of judges have a bearing on the outcome.