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Salomon and Company Limited as stated by Marc Moore in his recent article, the House of Lords,
"emphasised that the formally separate personality of a company should prevail in the eyes of the law and, consequently, in the opinion of a court, regardless of any economic or moral considerations that might otherwise justify regarding a registered company as the mere extension of its de facto incorporators."
The facts of the Salomon case were that Mr. Salomon ran a successful leather business as a sole trader. He then set up a company in which he was the main shareholder. He loaned the company money which he secured with the assets of the company...
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