Who established the principle of a corporation having the capacity of a natural person?

The principle of a corporation having the capacity of a natural person was established by the United Kingdom's House of Lords in the landmark case of Salomon v. Salomon & Co. Ltd. in 1897. This ruling articulated the important legal concept that a corporation is considered a separate legal entity from its shareholders, granting it the same legal rights and obligations as an individual person. This includes the ability to enter contracts, own property, and be liable for debts.

The significance of this principle is profound, as it allows corporations to operate independently of the personal finances and liabilities of their owners. As a result, the establishment of this principle by the House of Lords has been foundational in corporate law, influencing legal practices not only in the United Kingdom but also in many other jurisdictions, including Canada.