“Salomon is in the Shadow. it is Still Alive but no Longer Occupies the Centre of the Corporate Stage” (Schmitt Off, C.M., ‘Salomon in the Shadow’ [1976] JBL 305).
Critically evaluate, with reference to relevant case law and statute, how far this statement accurately reflects the current law relating to lifting the veil of incorporation. Introduction Salomon v Salomon[1] involved the principle of separate corporate personality. This states that as a general rule a limited company’s shareholders are not liable for the company’s debts beyond the nominal value of their shares[2]. However, in certain situations courts have ignored this principle[3]. Courts have done this under statute, during wartime, where […]