AN ANALYSIS OF THE IMPACT AND CONTINUED RELEVANCE OF SALOMON V. SALOMON ON NIGERIAN CORPORATIONS BASED ON RECENT JUDICIAL AUTHORITIES AND THE NEW CAMA 2020

Abstract

Corporate personality doctrine, enunciated in Salomon v Salomon,1 is a fundamental principle of Company Law cutting across jurisdictions. It developed over centuries, for purpose of bearing rights, duties and obligations. This age-long doctrine, presupposes that, an incorporated company, acquires a distinct personality and conduct its operations through its members, agents or organs as the case may be. However, overtime, several exceptional circumstances have been identified by courts and the legislature in a bid to determine when a corporation’s distinct personality status can be disregarded. This situation appears to threaten the very foundation of the doctrine. In view of this challenge, this paper attempts to examine Salomon’s case, its application, impact and continued relevance on Nigerian corporations based on recent judicial decisions and the new Corporate and Allied Matters Act, 2020. It therefore concludes that from available evidence, Salomon’s doctrine is still relevant in modern Nigerian company law as its basic premise remains intact till date.