Salomon v. Salomon was a case in Great Britain in 1897 that established the concept of the "corporate veil," according to McGill University. This case established the corporation as a different entity than the people within the corporation, specifically the shareholders. The case also created legal liability against the corporation instead of an individual person.Know More
Salomon v. Salomon involved the Salomon family, who owned the majority of shares in a leather company, according to The National Archives of the United Kingdom. After a strike, the business lost profits and went bankrupt. The value of the corporation at the time of insolvency was below the value of the debts. Creditors sued the individual shareholders for the rest of the funds. Even though the majority owner of the company was one family, the House of Lords held that a corporation is separate from the individuals. Only the corporation held the debt; the individual shareholders did not hold the debt. As part of a legal incorporation, the liability was more minimal than that of a partnership or sole proprietorship, according to Examination Preparation Services.
Though Salomon v. Salomon was a case in English common law, courts in other countries cite the case as part of corporate law, according to WIkipedia. Subsequent cases, however, limit the corporate veil and provide instances for lifting it.Learn more in Law
A preliminary examination is a court hearing in which the prosecutor must prove to the judge that there is enough evidence and probable cause for a case to go to trial, according to Cornell University Law School. The hearing does not determine the guilt of the defendant.Full Answer >
An independent witness is a third-party witness who does not have an affiliation with either parties involved in a case and someone who can present an unbiased opinion, as noted by Cornell University. Independent witnesses do not have anything invested in the outcome of a case, meaning the witness will not profit from the results of the case.Full Answer >
A preliminary inquiry is a legal procedure that determines if the prosecution has gathered enough evidence to move forward with their case, according to the Cornell University Law School. It is also known as a preliminary hearing.Full Answer >
In a court of law, a precedent is important because it gives the judges a base guideline to work from when deciding the outcome of a case. Many of the precedents laid down for the courts to follow have been around for over 200 years.Full Answer >