LANDMARK CASE

Salomon v. A. Salomon and Co. Ltd.

[1897] AC 22 · House of Lords (UK) · Corporate law

At a glance

Citation: [1897] AC 22
Court: House of Lords (UK)
Area of law: Corporate law
In one line: Yes. A properly incorporated company is a separate legal entity, even if one person controls it.

1 Facts

Salomon incorporated his business and held most shares. When it failed, creditors sought to make him personally liable.

2 Issue

Is a company a separate person from its shareholders?

3 What the court decided

Yes. A properly incorporated company is a separate legal entity, even if one person controls it.

4 Why it matters

The foundation of corporate personality.

5 Think about it

When should courts lift the corporate veil?

6 Analyse it yourself

Read the full judgment from an official source or a law database, then brief it in seven steps: facts, issues, arguments, decision, ratio, obiter and significance. Always check the citation before you rely on it.

7 More cases on Corporate law

Delhi Development Authority v. Skipper Construction (1996) 4 SCC 622
Life Insurance Corporation v. Escorts (1986) 1 SCC 264
Tata Sons v. Cyrus Investments (2021) 9 SCC 449

All 366 landmark cases · Today's Case of the Day · Weekly quiz

← Salem Advocate Bar Association v. Union of India Samar Ghosh v. Jaya Ghosh →

A short teaching summary for students. Educational content only, not legal advice.