... rigid and clearly open to abuse. It would be argued that a separate legal personality in conjunction with limited liability offered the nineteenth century entrepreneur the protection they desperately needed if their business ventures were to grow and expand beyond their personal resources. Others would contend that this ruling was to the detriment of the company's creditors, allowing the unscrupulous individual or individuals to set up a limited company at little expense and little or no risk to themselves. Indeed, some detractors of the outcome of the Salomon v. Salomon & Co Ltd ruling have referred to such companies as a "sham", "a screen" and "a mere fraud". These, and a plethora of similar terms illustrates perfectly, as Murray A. Pickering states, "the degree of uncertainty on the part of the courts on some occasions when dealing with the separate existence of the company" (1). The uncertainty created by the House ...

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