1.Russell is the sole proprietor of a popular delicatessen. A friend advises him to register his business as a limited company to raise funds, and to include his sons and daughters as shareholders. In addition to himself, he appoints his oldest children as directors. Woolworths moves into the building next door and George suffers a heart attack. Russell's delicatessen then fail and the company is liquidated. There are insufficient company assets to discharge all the creditors. The creditors meet and decide on a strategy to recover their losses. They argue that Russell and his company are in essence the same person and that he should be personally liable for the debts of the company. Discuss the principle in Salomon v Salomon & Co Ltd and explain whether the creditors are correct or not. The doctrine of precedent underlies the common law legal system. Explain the doctrine and its significance.