By Emmanuel M. Nzaku**
In 1892, when Mr. Aron Salomon was making leather boots and shoes in his White Chapel High Street establishment, he had no idea that his enterprise would shape the nature and operation of modern trade. Since his sons wanted to become business partners, he turned the business into a limited liability company. The company purchased Salomon’s business at an excessive price for its value with his wife and five elder children becoming subscribers and the two elder sons directors but as nominee for Salomon, making it a one-man business. Not only didn’t Mr. Salomon take 20,001 of the company’s 20,007 shares, the company also gave Mr. Salomon £10,000 in debentures. When the company’s business failed and it went into liquidation, Salomon’s right of recovery against the debentures stood prior to the claims of unsecured creditors, who would, thus, have recovered nothing from the liquidation proceeds.