The UK Court of Appeal was anti-semetic and felt Salomon was a fraud and his company was a "sham". But the House of Lords court stated that the company was properly set up, there was no fraud and thus Mr Salomon was a distinct entity from his company, his directorship, his shareholding and his rights as a secured creditor.
This principle has been applied in many, many cases ever since. When I first read the case in 1983 while at Law School in Coventry (UK) I fell in love (if that is the right expression) with corporate law. Many of you know I wanted to be a "lawyer" from about 14 years old, but in 1983 I decided "corporate law" was going to be "my area of expertise" - over 25 years later, it still is! Also, within corporate law, my area of interest has been directors' duties and securities markets fraud (in particular the confusion over insider trading and market manipulation).