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CII: P05 Insurance Law > 2: Legal personality > Flashcards

Flashcards in 2: Legal personality Deck (6)
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1

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.

2

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.

3

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.

4

What are natural persons?

All human beings.

Begins at birth, ends at death.

5

What are juristic persons?

Non-human legal entities.

Sometimes known as artificial legal persons.

6

What are corporations sole?

Legal persons representing an official position which will be occupied by a series of different people.
E.g. The Queen.