• 1 Marks

BL – May 2022 – L1 – SA – Q5 – Company Law

Identify the principle established in the Salomon vs Salomon case.

The case of Salomon vs Salomon is an authority for the principle of
A. Majority rule and minority right protection
B. Indoor management rule
C. Ultra vires doctrine
D. Corporate personality
E. The rule in Turquand

Answer: D. Corporate personality

Explanation:
The Salomon vs Salomon case established the principle of corporate personality, meaning that a company has a legal identity separate from its owners and shareholders. This landmark case recognized that the company, once incorporated, is a distinct legal entity. Therefore, D. Corporate personality is the correct answer.

Back to all questions

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form