In the leading case Salomon v. Salomon & Co. Ltd., [1897] AC 22, the House of Lords held that:

1. In Salomon v. Salomon & Co. Ltd., the House of Lords laid down the foundational principle of CORPORATE PERSONALITY — a company is a separate legal entity distinct from its members, even if one person effectively owns and controls it. 2. Mr Salomon, having incorporated his shoe business with himself, his wife and children as the seven subscribers, was held NOT liable for the company's debts even after liquidation. 3. The principle is codified in Indian law through Section 9 Companies Act 2013 (effect of registration: from date of incorporation, the company shall be a body corporate by the name contained in the MoA, capable of exercising all functions, etc.). 4. The 'corporate veil' may be lifted in exceptional cases (fraud, evasion of statute, etc.). 5. Hence option B is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Salomon v. Salomon & Co. Ltd., [1897] AC 22_