Salomon v Salomon

Salomon v Salomon, November 17, 1896

General Overview

Salomon v Salomon was an important case in clarifying the legal definition of a company. Aron Salomon, a boot manufacturer and leather merchant, set up a company in which he held nearly all the shares and was managing director. He loaned the company his own money and received debentures in return. He was therefore entitled to a sum of the company’s assets. After the company later went into liquidation, Salomon sought to be treated as a “secured” creditor and to have his claim settled before those of other creditors. The House of Lords upheld his claim. It ruled that a company is separate from the individuals that compose it. [1]

Resources

Notes

1. Zulkifli Hasan, The cases that changed Britain: 1870-1916

See Also

Further Reading