Solomon v. Solomon & Co. Ltd (case)

**Solomon v. Solomon & Co. Ltd** is a landmark legal case from 1897 that established the principle of corporate personality. Mr. Solomon, a sole trader, created a limited company and sold his business to it, receiving shares and debentures in return. When the company later went bankrupt, creditors tried to claim against Solomon personally. The House of Lords held that the company was a separate legal entity, protecting Solomon from personal liability for the company's debts. This case reinforced that a corporation has its own rights and obligations, distinct from its owners, shaping modern company law.