Salomon v. A Salomon & Co Ltd [1897]
[1897] AC 22 · House of Lords · United Kingdom
Issue
Was the company a separate legal person from its shareholder?
Held
Yes. Properly incorporated companies have separate legal personality.
Exam use
Review the ratio and reasoning before applying this case in problem questions.
Summary
Foundational corporate personality case.
Facts
Issue
Was the company a separate legal person from its shareholder?
Held
Yes. Properly incorporated companies have separate legal personality.
Ratio Decidendi
A corporation is a separate legal person from its shareholders.
Reasoning
Essay-Ready Explanation Generator
Version 1 of 4
Reference to Salomon v. A Salomon & Co Ltd ([1897] AC 22) strengthens a business associations law answer because the case reflects the principle that A corporation is a separate legal person from its shareholders. Applied to a problem question, the case should be used after identifying the issue as Was the company a separate legal person from its shareholder? The stronger essay move is to connect the material facts to the court's holding, then explain whether the present facts support the same conclusion or justify distinguishing the authority.
Significance
Related Cases
No related cases listed.
Exam Tips
Revision Checklist
- Name the issue before discussing facts so the marker sees the legal question immediately.
- State the holding in one sentence, then use the ratio to explain why the court reached that result.
- Use the citation and jurisdiction to show why this authority matters for the problem you are answering.
- Pair this case with one supporting or contrasting authority if the question tests limits, policy, or exceptions.