Flashcards in 2: Legal personality Deck (6)
Salomon v. Salomon (1897)
(Effects of incorporation, separate legal personality)
- Salomon, who manufactured boots, had formed its business into a company.
- he held 20,000 shares and six family members held one each.
- advanced a loan secured on the assets of the company, then encountered financial difficulties.
- Held that he took preference over ordinary creditors. The law treated him as a separate person from the company, even though he dominated it.
Bolton v. Stone (1951)
(Unicorporated associations, Rights of members)
the claimant, Miss Stone, brought her action against Bolton, the Secretary, and three other members of a cricket club, which was unincorporated.
What does Ultra Vires mean?
'beyond the powers'
for example a corporations are established for particular purposes. It must not engage in activities which are outside of this purpose.
What are natural persons?
All human beings.
Begins at birth, ends at death.
What are juristic persons?
Non-human legal entities.
Sometimes known as artificial legal persons.