Discuss the rules and principles relating to promoters in the case of salomon and salomon & Co. ltd.
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ESSAY DETAILS
Words: 1077
Pages: 4
(approximately 235 words/page)
Pages: 4
(approximately 235 words/page)
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A promoter is a person who takes on the responsibility of setting up a co or any other venture. The promoter of a co were defined in section 4 as a person who brings the co into existence by taking an active part in forming co or finding persons to join it as soon as it is technically formed; taking an active part in forming co that actives include buying property for the co, taking lease …
showed first 75 words of 1077 total
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showed first 75 words of 1077 total
showed last 75 words of 1077 total
…As principles of the Salomon's case, the debits of the company are the responsibility of the company and not its members; company may contract with its shareholder should the need arise; the company must sue in its name for any wrong that is committed against it; and the company can own assets and that the shareholders have no proprietary interest in those assets. So, Salomon in this case did not breach of the fiduciary duty.
…As principles of the Salomon's case, the debits of the company are the responsibility of the company and not its members; company may contract with its shareholder should the need arise; the company must sue in its name for any wrong that is committed against it; and the company can own assets and that the shareholders have no proprietary interest in those assets. So, Salomon in this case did not breach of the fiduciary duty.
