ExpertEasy1 markMultiple Choice
ACCA · Question 33 · Corporate and Business Law
Which landmark case firmly established the principle of separate corporate personality, confirming that a company is a distinct legal entity from its shareholders?
Which landmark case firmly established the principle of separate corporate personality, confirming that a company is a distinct legal entity from its shareholders?
Answer options:
A.
Carlill v Carbolic Smoke Ball Co
B.
Salomon v A Salomon & Co Ltd
C.
Caparo Industries plc v Dickman
D.
Adams v Cape Industries plc
How to approach this question
Identify the foundational case of UK company law.
Full Answer
B.Salomon v A Salomon & Co Ltd✓ Correct
Salomon v A Salomon & Co Ltd (1897) is the cornerstone of UK company law. The House of Lords held that a company is a separate legal person from its members, even if one person holds almost all the shares and controls the company.
Common mistakes
Confusing Salomon with cases on lifting the veil (like Adams v Cape).
Practice the full ACCA LW — Corporate and Business Law Practice Exam 4
60 questions · hints · full answers · grading
More questions from this exam
Q01AgriGrow Ltd, a large-scale agricultural technology firm, is pursuing a complex breach of contrac...MediumQ02In the context of judicial precedent, the Court of Appeal (Civil Division) is generally bound by ...MediumQ03Under the Human Rights Act 1998, what action must a UK court take if it finds that a piece of pri...MediumQ04QuantumLeap Tech, a startup, displays a highly specialized server rack on its website with a pric...MediumQ05A cross-border logistics company, TransGlobal Freight, urgently asks an independent consultant to...Hard