ACCA LW ^Eng Syllabus D. The Formation And Constitution Of Business Organisations - Illustrate The Effect Of Separate A) Personality And The Veil Of Incorporation - Notes ^{4 / 5}

The case of Salomon v Salomon & Co established that the members of a company were separate legal persons to the company itself, separated by the 'veil of incorporation'

This effectively means:

1. Members' liability is limited

2. Perpetual succession - companies can effectively live forever

3. The company itself can own property

4. The company can sue, and be sued in its own name