What Was the Main Rule That Was Established in Salomon's

question 42

Multiple Choice

What was the main rule that was established in Salomon's Case (1897) ?

• A)A person who was the main shareholder and director of a company could also be an employee of the company.
• B)A company is separate from the person who controls it.
• C)A director who takes no part in the daily business of the company may be liable for debts if the company becomes insolvent.
• D)A person cannot escape liability by hiding behind the 'corporate veil'.