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Salomon has a shoe business. He decides to incorporate and sells shares. Over time, the business starts to fail and begins to run up debts.
Salomon has a shoe business. He decides to incorporate and sells shares. Over time, the business starts to fail and begins to run up debts. The shareholders want to exact payment from Salomon for their losses. The court decides that Salomon is not responsible for their debts. In fact, as a creditor himself against the business, he has a right to any assets of the business too. Why?
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