Legal aid oyo journal of legal issues vol. 1, Issue 1, 2017

Salomon v. Salomon confers upon a businessman far outweighs the disadvantages. For one, the principle of separate legal entity established in Salomon's case has been instrumental in the development of modern capitalism and the immense social and economic wealth it has generated. The uproar created by The House of Lords decision in Salomon to extend the principle of corporate personality to small private enterprises, has been largely negated by joint legislative and judicial action as regards lifting the veil Indeed, "the legislature can forge a sledgehammer capable of cracking open the corporate
shell”. And even without statutory assistance, the courts have often been ready to draw aside the veil and impose legal liability on members and directors whereto apply the Salomon principle strictly would lead to injustice, inconvenience or damage to government finances. On the strength of this research therefore, it is my conclusion that a strong case fora reformation of the law has not been made. The law as it currently stands reflects the balance that is required between the needs of the economy and the needs of justice and if required by public policy, the courts have been invested with the power and discretion to continue the development of this area of law, which without gainsaying, has withstood the test of time for over a century and has remained, the cornerstone upon which the entirety of company law rests. Consequently, the principle asset out in the case of Salomon V Salomon remains relevant to today‟s business world.