Business Case: Solomon V Solomon And Co. Ltd.

Introduction

An organization is types of corporation, which is a region sort of association. This implies that it is body of bodies; in fact, a fake individual composes of regular persons. For the purpose of much legislation it considered as a legal person. An organization is separate legal personality. Under the idea of limited liability the owners of the organization under ordinary circumstances, are not answerable or in charge of the commitments of the organization in this manner owners shareholders liable just for the amount of their unpaid shares and not the commitments of the organization. The idea of separate legal personality was strongly found by House of Lords in the major case Solomon v Solomon and co.Ltd . (Idzwan, 2009) The case strongly found that upon incorporation, another and separate artificial entity starts to be. At law, a partnership is

Enron had losses of $591 million and had $628 million in debt, by the end of 2000. The U.S. Securities and Exchange Commission (SEC) started an examination, Enron declared for bankruptcy under Chapter 11 of the United States Bankruptcy Code. Enron's $63.4 billion in resources made it the biggest corporate bankruptcy in U.S. Subsequently fiduciary responsibilities hold that fiduciaries must protect the interests of the laborers and retirees in their advantage arranges but Enron neglected to do so. However, reporting of incorrect profits, insider trading and the use of accounting methods that constituted accounting fraud breaches the duty to care. (Leigh,