This example is best explained and illustrated in the case of Salomon v Salomon and Co Ltd where Salomon for many years carried on a crease as a leather merchant . In 1892 he registered a limited play along c exclusivelyed Salomon and Co . Ltd . to sell over the parentage . The share capital of the company was ?40 ,000 , divided into 40 ,000 shares for ?1 each . The company punctually took over the business of Salomon at the hold harm of ?38 ,782 19s 7d after it was concord that take apart of the purchase price should be br nonrecreational by the issue of debentures for ?10 ,000 by the company to Salomon In pursuance of the said agreement as to the mode of [payment of the purchase price , debentures for ?10 ,000 was issued by the company to Salomon in part of payment thereofe company , a liquidation was made , and a liquid ator appointed . The debts of the unlatched creditors of the company amounted to ?7 ,733 8s 3d . The assets of the company amounted to approximately ?6 ,000 and after allowing for X s debt and by-line under the debentures , it would leave a balance of ?
1 ,005 , which Salomon claimed as a beneficial possessor of the debentures for ?10 ,000 . In X s military action to use his security , the liquidator made a claim against X and Salomon , and contended that the company was mere nominee and agent of Salomon , that Salomon to that achievement was conceivable to indemnify the liquidator against the whole of the unsecured debts of the company , and that he was entitled to alien for that su m on all moneys payable by the company to S! alomon . The Court of Appeal agreed with the liquidator s contentions and Salomon appealed to the House of Lords . It was held by the...If you want to get a replete essay, order it on our website:
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