Part2TheVeilofIncorporation1IntroductionTheincorporatedbodyisaseparatelegalentityformit’:‘Salomonprinciple’,::,&CoLid(1897)Thefacts:,£38,782,thepurchasepricebeingpayabletotheclaimantbywayoftheissueof20,000£1shares,theissueofdebenturesfor£10,000(effectivelymakingSalomonasecuredcreditor)andthepaymentof£8,,,pany,pany’sbusinesswasineffectstilltheclaimant’s(heowned20,001of20,007shares)pany’&CoLid(1897)Decision:Atfirstinstance,andintheCourtofAppeal,thattheothershareholderswere‘merepuppets’,anditsdebtswereliabilitiesof,,hisdebentureswerevalidlyissued,pany’:panyitselfwillcontinuetoexistasalegalentityregardle
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