COMLAW 203 : Useful cases for 203 complete.docx
31 Aug 2013
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Mr salomon had a successful sole proprietor. He wished to transfer business to company. Mr salomon entered into agreement to transfer business to company in return for a debenture and shares. 20,000 shares and 10,000 pounds in cash secured by debenture over the assets of the company. Mr salmon and four sons, daughter and wife took one fully paid share each 7 shareholders. Held: there was no fraud as no one was mislead. Laf had 3,000 shares, lee took 2,999 and a solicitor took the other share. Lee was also chief pilot of laf. Lee died in an aircraft accident in 1956. Workers were only available to workers , must be employed by company. Held: there was a contractual relationship between lee and laf. The fact he was director did not change this. Director he gave instructors on behalf of company, and as employee acted on those instructions.
