... starting place. The fundamentally important principal that emerged from Salomon is that a company, once incorporated, is a legal entity in its own right. In other words, the company itself, in this instance E Ltd., is a distinctly separate being from those that are its members (R and S), and as such, has "individual" rights and liabilities accordingly. This has two immediate results. Firstly, the company, not its members, must seek a remedy despite the fact that in reality, it will be the members, not the company, that conclude a remedy is needed to address some wrong doing to the company. Secondly, the alternative situation in which the company itself must be sued directly, not the members personally, in the event that the company itself has committed some wrongdoing. The overall result is that members' personal liabilities and the liabilities of the company are regarded as separate. For all intents and purposes, the ...

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