The case of Salomon v Salomon & Co Ltd [1897] AC 22 is authority for the principal that: January 1, 2023 by admin The debts of a company are the debts of its shareholders. A company is a legal entity separate from its shareholders. Debenture holders take precedence over unsecured creditors. Companies must have more than one director. See Answer A company is a legal entity separate from its shareholders.