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About Corporate Law - Course Notes
1. The document discusses the 1897 case of Salomon v Salomon, where Salomon set up a company called Salomon & Co Ltd to take over his shoe business. He and his family held most of the shares, with Salomon also acting as director and secured creditor through a debenture over the shoe business assets. 2. When the company became insolvent, the question arose as to whether Salomon as secured creditor had priority over other unsecured creditors. The court found that yes he did, as the company was considered a separate legal entity from Salomon, and he was entitled to enforce his security even though he controlled the company. This established the principle of the separation of a company from its
Detailed Information
| Author: | ['Sarah Camilleri'] |
|---|---|
| Publication Year: | 2020 |
| Pages: | 14 |
| Language: | English |
| Format: | |
| Price: | FREE |
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