ExpertEasy1 markMultiple Choice
The formation and constitution of business organisationsSyllabus DCompany LawSeparate Legal Personality
ACCA · Question 34 · The formation and constitution of business organisations
Section A
Which landmark case firmly established the principle that a company is a separate legal entity distinct from its shareholders?
Section A
Which landmark case firmly established the principle that a company is a separate legal entity distinct from its shareholders?
Answer options:
A.
Carlill v Carbolic Smoke Ball Co
B.
Donoghue v Stevenson
C.
Salomon v A Salomon & Co Ltd
D.
Caparo Industries plc v Dickman
How to approach this question
Recall the foundational case of UK company law.
Full Answer
C.Salomon v A Salomon & Co Ltd✓ Correct
Salomon v A Salomon & Co Ltd (1897) is the foundational case of UK company law, establishing that upon incorporation, a company becomes a separate legal person, distinct from its members and directors.
Common mistakes
Forgetting the name of this essential case.
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