Mr Solomon was a Victorian bootmaker. He sold the assets of his business to a company Solomon & Co Ltd. Of which he was the sole (or virtually the sole shareholder).
He continued to trade as a bootmaker in his own name and went bust. S creditors tried to seize the assets of the business (now owned by Solomon & Co Ltd. The decision of the court was that Solomon & Co Ltd formed a separate legal entity from Mr Solomon.Mr Solomon's debts were not the debts of Solomon & Co.
Ltd. The rule is that a properly formed limited liability company is a legal entity in its own right.
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