Important Case Laws.
Important case laws on Company law 1. Separate Legal Entity. 1. Saloman Vs. Saloman & Co. Ltd. (1895 - 99) Facts - Saloman sold his business to a company named Saloman & Company Ltd., which he formed. Saloman took 20,000 shares. The price paid by the company to Saloman was £ 30,000, but instead of paying him, cash, the company gave him 20,000 fully paid shares of £ 1 each & £ 10,000 in debentures. The company wound up & the assets of the company amounted to £ 6,000 only. Debts amounted to £ 10,000 due to Saloman & Secured by debentures and a further £ 7,000 due to unsecured creditors. The unsecured creditors claimed that as Saloman & Co. Ltd., was really the same person as Saloman, he could not owe money to himself and that they should be paid their £ 7,000 first. Judgment- A Company is a "legal person" or "legal entity" separate from and capable of surviving beyond the lives of, its members The company is not in