Does Salomon still reign?

Does Salomon still reign? Critically analyse recent case law on lifting the veil of incorporation to determine in what circumstances the courts are willing to pierce the corporate veil.

Quick Response

The case Salomon v A Salomon and Co Ltd [1897] revolves around the issue of unsecured creditors in the liquidation process of Salomon Ltd., where Salomon was the majority shareholder and hence was made liable for the company‚Äôs debt at a personal level. The argument that led to the ruling still reigns. This is because the obligations of the company should not be liable to the shareholders. The shareholders should not be at risk or exposed to liability at a personal level(Rush & Ottley, 2006). In additions, the company is allowed to own property, seek and pay for debt meant for growth and development of the company. Such arguments make the Salomon ruling to remain predominant and continue to reinforce company law…

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