The legal position regarding the notion of separate legal entity and limited liability.
Salomon's case is actually the beginning of company law as we understand it today. In Salomon's case, there were two main legal issues raised which hadn't been noticed before: whether an artificially formed entity been regarded as an independent entity like a nature person which can separate from the persons who really formed or/and controlled it, and whether the persons who formed or/and controlled the company can avoid the liabilities when conjunctures of the company occurs. Afterward, two important notions: separate legal entity and liability came into people's mind after they had ponde…
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