Company law Essay Example | Topics and Well Written Essays - 2500 words - 4

Company law - Essay Example For example, the verdict of this case law also highlights that the company can also be sued or can sue others as well. Through this authority, the company will be given an opportunity to defend itself and provide grounds for legitimising their business actions and their ramifications as well. At the same time, the company has right to own property, assets and liabilities as well. When these characteristics are compared with a natural human being, it can be deduced that both corporate entity and human being have similar rights, authority and ownership of assets. However, there are certain circumstances in which this artificial existence is not allowed but the veil of incorporation is lifted for ascertaining liability or any other legal issue that have necessitated such action. In the following parts of this essay, first the case study background has been provided in which the basic facts and other details have been included. Subsequently, the related held has also been provided. It is followed by various sections highlighting the influence on English company law and common law as well. In this discussion segment, both aspects have been highlighted so as to ascertain and understand the usefulness of this case law. For this purpose, support of subsequent other case laws has also been provided. Salomon was a merchant in the boot and leather business. With the passage of time, the business experienced a steady rise which required additional capital and members as well. In order to meet the needs of growing business, Solomon decided to form a limited company by taking his family members as partners. Subsequently, he sold the business control and ownership to the new company as the new company paid cash, debentures and shares as well. However, due to the certain events, the company was liquidated and the case was moved into the court because the parties argued that Solomon and the