Salomon v Salomon & Co Ltd (1897) reinforced the principle of corporate personality and limited liability, confirming that a company is a separate legal entity distinct from its shareholders. This ruling protects shareholders' personal assets, limiting liability to their investment.
Separate Legal Entity: The case established that a company is a separate legal entity from its shareholders. Even if one person owns the majority of shares, the company is treated as a distinct legal entity with its own rights and liabilities.
