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The principle that "a company, once validly constituted under the Companies Act, becomes a legal person distinct from its members" is most directly traceable to:
Answer & Solution
Correct answer: B.
1. Lesson 1 cites Salomon v. Salomon as having "clearly established the principle that once a company has been validly constituted under the Companies Act, it becomes a legal person distinct from its members".
2. The Lords expressly observed that the company "is a different person altogether from the subscribers of the memorandum".
3. Lee v. Lee's Air Farming applied this principle to a director-employee context but did not originate the rule.
4. Daimler dealt with enemy character; State Trading Corporation dealt with citizenship — both are separate doctrines.
_Source: ICSI CS Executive Paper 2 (Company Law) — Lesson 1: Introduction to Company Law, pp. 2-35._
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