Salomon v A Salomon & Co Ltd
Bàitập 1 – Chương 1
HãyđọccácđoạntríchtrongbảnánvàxácđịnhcácnguồnluậtvàTòaánđãsửdụng
Salomon v A Salomon & Co Ltd
From Wikipedia, the free encyclopedia (Redirected from Broderip v Salomon)
Salomon v A Salomon & Co Ltd [1897] AC 22 is a landmark1 UK company law case. The effect of the Lords ' unanimous 2 ruling was to uphold 3firmly the doctrine4 of corporate personality, as set out in the Companies Act 1862, so that creditors of an insolvent company could not sue the company 's shareholders to pay up outstanding debts.
Facts[edit]
MrAron Salomon made leather boots and shoes in a large Whitechapel High Street establishment. His sons wanted to become business partners, so he turned the business into a limited company. His wife and five eldest children became subscribers 5 and two eldest sons also directors. Mr Salomon took 20,000 of the company 's 20,006 shares. Transfer of the business took place on June 1, 1892. The company also gave Mr Salomon £10,000 in debentures6 (i.e., Salomon gave the company a £10,000 loan, secured by a charge over the assets of the company).
Soon after Mr Salomon incorporated his business a decline in boot sales, exacerbated 7 by a series of strikes which led the Government, Salomon 's main customer, to split its contracts among more firms to avoid the risk of its few suppliers being crippled 8 by strikes. Mr Salomon assigned 9 Edmund Broderip his debenture, the loan with 10% interest and secured by a floating charge. But Salomon 's business still failed, and he could not keep up with the interest payments. In October 1893 MrBroderip sued to enforce his security. The company was put into liquidation. Broderip was repaid his £5,000, and then the debenture was reassigned to Salomon, who retained the floating charge over the company.
Judgment[edit]
High Court[edit]
At first instance, the case entitled Broderip v Salomon[1] Vaughan Williams J said MrBroderip 's claim was valid. It was undisputed that the 200 shares were fully
HãyđọccácđoạntríchtrongbảnánvàxácđịnhcácnguồnluậtvàTòaánđãsửdụng
Salomon v A Salomon & Co Ltd
From Wikipedia, the free encyclopedia (Redirected from Broderip v Salomon)
Salomon v A Salomon & Co Ltd [1897] AC 22 is a landmark1 UK company law case. The effect of the Lords ' unanimous 2 ruling was to uphold 3firmly the doctrine4 of corporate personality, as set out in the Companies Act 1862, so that creditors of an insolvent company could not sue the company 's shareholders to pay up outstanding debts.
Facts[edit]
MrAron Salomon made leather boots and shoes in a large Whitechapel High Street establishment. His sons wanted to become business partners, so he turned the business into a limited company. His wife and five eldest children became subscribers 5 and two eldest sons also directors. Mr Salomon took 20,000 of the company 's 20,006 shares. Transfer of the business took place on June 1, 1892. The company also gave Mr Salomon £10,000 in debentures6 (i.e., Salomon gave the company a £10,000 loan, secured by a charge over the assets of the company).
Soon after Mr Salomon incorporated his business a decline in boot sales, exacerbated 7 by a series of strikes which led the Government, Salomon 's main customer, to split its contracts among more firms to avoid the risk of its few suppliers being crippled 8 by strikes. Mr Salomon assigned 9 Edmund Broderip his debenture, the loan with 10% interest and secured by a floating charge. But Salomon 's business still failed, and he could not keep up with the interest payments. In October 1893 MrBroderip sued to enforce his security. The company was put into liquidation. Broderip was repaid his £5,000, and then the debenture was reassigned to Salomon, who retained the floating charge over the company.
Judgment[edit]
High Court[edit]
At first instance, the case entitled Broderip v Salomon[1] Vaughan Williams J said MrBroderip 's claim was valid. It was undisputed that the 200 shares were fully