The rule in Salomon v Salomon & Co [1897] AC 22 has been described as Essay - 5

The rule in Salomon v Salomon & Co 1897 AC 22 has been describe as one of the corner stones of English Company Law. Discuss the rationale and impact of the decision on company law - Essay ExampleHowever, this cover argues that such balance has positive implications.The House of Lords decision in the case was good. At various general levels, Salomons case had universal recognition of the authority and linguistic rule where corporations were separate legal entities. Cases of this nature had firm establishment of incorporation, and new as well as separate artificial entities came to existence. From a legal perspective, corporations are hard-hitting persons that have their personality independent of and distinct from the persons forming it, invested money in it, and directed and managed the operations (Mntysaari, 2006, p 34).The identity that corporations are separate legal entities in their honorable forms grounds for modern corporate law such as in Department of Trade and Industry v MacLaine Watson & Co Ltd. Every legal system of rules that attains various levels of maturity appears to enjoy compulsion by the increasing complexities of human affairs and creation of persons without human characteristics. Consistency with such observation illustrates that various primeval and essential notions that give logical symmetry in industrial feudalism are personification of industrial enterprises. The support awarded to principles of legal personality separateness is divided up among academic commentators and are unbroken into judicial and legislative circles (Ferran & Ho, 2014, p 312). The principle has enshrined depictions in section 124 in Corporations Act. The judiciary has consistent reaffirmations of the need of treating the legal school of thought with few exceptions. Subsequent Australian and English decisions of the court uphold the Salomon principle. Since Salomons case had the decision, the entire separation of company and members is rather evident. The r uling stands the test of time tied(p) with few exceptions (Routledge. 2010, p 352).In theory,