Acct 200 Week 2 Individual Assignment
LAW 200
Assignment
Sept, 8th 2013
Prepared By
Zeeshan Rahman
ID # 093 0194 530
Prepared For
Shaheen Ahmed (SHD)
Section 10
Introduction
Company Defined
According to Lord Justice Lindley, “By a company is meant association of many person who contribute money or money’s worth to a common stock and employ it for a common purpose. The common stock so contributed is denoted in money and is the capital of the company. The persons who contribute it or to whom it belongs are members. The proportion of capital to which each member is entitled is his share.” (Mitra & Sen, 1956, p. 554)
A corporation under Company law or corporate law is specifically referred to as a "legal person"- as a subject of rights and duties that is …show more content…
He incorporated a company named Salomon and Co. Ltd. He took over the entire business of a running concern. Salomon and the seven subscribers to the memorandum were he and his family members. Salomon and his two sons were the Directors of the Company. The business of the company was transferred for £30000. Salomon took 20000 share of £1 each and debentures worth 10000 in …show more content…
On winding up, the unsecured creditors contended that the company was not having independent existence as Salomon was the Managing Director of the company and the entire company was merely a sham. Their contention was that the limited firm was only a guise to conceal the real identity of the persons who own. However, it was held that Salomon and Co. Ltd. fulfilled all the requirements of the legislature. Further, it was held that the company cannot be equated with the members comprising it. The company was not the agent of Salomon. It was therefore, treated as a company, distinct and independent corporation. The trial judge made the declaration in favor of the company. Salomon then filed an appeal at the Court of Appeal. The Court of Appeal agreed with the trial judges and dismissed the appeal. Salomon appealed to the house of lord and then the order was ultimately reserved in order of Salomon.
Verdict court of Appeal
The Court of Appeal also ruled against Mr. Salomon, though on the grounds that Mr. Salomon had abused the privileges of incorporation and limited liability. When question arose about whether the debenture holders or the other creditors got higher priority on the assets, the decision was against the debenture
Assignment
Sept, 8th 2013
Prepared By
Zeeshan Rahman
ID # 093 0194 530
Prepared For
Shaheen Ahmed (SHD)
Section 10
Introduction
Company Defined
According to Lord Justice Lindley, “By a company is meant association of many person who contribute money or money’s worth to a common stock and employ it for a common purpose. The common stock so contributed is denoted in money and is the capital of the company. The persons who contribute it or to whom it belongs are members. The proportion of capital to which each member is entitled is his share.” (Mitra & Sen, 1956, p. 554)
A corporation under Company law or corporate law is specifically referred to as a "legal person"- as a subject of rights and duties that is …show more content…
He incorporated a company named Salomon and Co. Ltd. He took over the entire business of a running concern. Salomon and the seven subscribers to the memorandum were he and his family members. Salomon and his two sons were the Directors of the Company. The business of the company was transferred for £30000. Salomon took 20000 share of £1 each and debentures worth 10000 in …show more content…
On winding up, the unsecured creditors contended that the company was not having independent existence as Salomon was the Managing Director of the company and the entire company was merely a sham. Their contention was that the limited firm was only a guise to conceal the real identity of the persons who own. However, it was held that Salomon and Co. Ltd. fulfilled all the requirements of the legislature. Further, it was held that the company cannot be equated with the members comprising it. The company was not the agent of Salomon. It was therefore, treated as a company, distinct and independent corporation. The trial judge made the declaration in favor of the company. Salomon then filed an appeal at the Court of Appeal. The Court of Appeal agreed with the trial judges and dismissed the appeal. Salomon appealed to the house of lord and then the order was ultimately reserved in order of Salomon.
Verdict court of Appeal
The Court of Appeal also ruled against Mr. Salomon, though on the grounds that Mr. Salomon had abused the privileges of incorporation and limited liability. When question arose about whether the debenture holders or the other creditors got higher priority on the assets, the decision was against the debenture