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Only the company, and not Macaura, could insure its property against loss or damage. The Supreme Court observed: Separate personality means that the artificial legal person, the company, can do almost everything a human person can do; it can make contracts, employ people, borrow and pay money, sue and be sued, among other things. The liquidator and the other creditors objected to this, claiming that it was unfair for the person who formed and ran the company to get paid first. This separation of a company from its members was established in the House of Lords in the famous case. Some years later the company went into liquidation, and Mr Salomon claimed to be entitled to be paid first as a secured debenture holder.

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