Showing posts from July, 2014

Revival of Salomon in Tortious Liability

One begins to wonder if the Court in the case of Salomon v Salomon [1897] A.C.22 ever envisaged that a principle derived from the case law in 1897 was continue to be litigated with such furore in 2014. The principle in Salomon sought to keep companies as separate legal entities which personalities that are distinct from their owners and controllers. The advantage here being that companies would not be liable for the debts of their shareholders and management and, in the reverse, shareholders and management would not be liable for the debts of the company. The advantages of the separate entity principle is worthy of an article in itself. The long and the short of it being that by limiting the liability of shareholders company law is able to encourage entrepreneurship amongst those otherwise wary of the dangers associated with a failed venture; thus those without deep pockets but with deep ideas and skills have been able to trade and ensure their risk is limited. However,