9. Value of all the creditors is 17000 pound out of which 10000 was secured, held by Mr. Salomon & rest are unsecured.2/24/2010 3 Ghanshyam IILM Gurgaon
12. Nothing was left for unsecured creditors2/24/2010 4 Ghanshyam IILM Gurgaon
13.
14.
15. SLE legally separate business from individual or owner Like limited liability company or a corporation 2/24/2010 6 Ghanshyam IILM Gurgaon
16.
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18. on the contrary Salomon was a victim in that he did his best to rescue his company by cancelling the debenture he took and raising them to an outside creditor who provided fresh loan capital. 2/24/2010 8 Ghanshyam IILM Gurgaon
19.
20.
21. And regarding the company instead as a myth and fiction, they thought that the business belonged to Aron Salomon.2/24/2010 10 Ghanshyam IILM Gurgaon
22. Conclusion The House of Lords found that honesty and good faith on Salomon’s part prevented him from assuring the company creditors as they knew they were dealing with a legal person totally different from his incorporators. Limited liability at that time was also available to sole traders and large investors who wanted some form of limit on their undertakings. 2/24/2010 11 Ghanshyam IILM Gurgaon