The correct answer is: A company and its members are separate legal persons.

This is the principle of Salomon.

A director cannot take a decision to employ himself and later make a claim against the company as an employee. This is untrue, a director can do this Lee v Lee Air Farming.

When a company is wound up, directors who knowingly carried on the business with intent to defraud creditors may be made personally liable for the company’s liabilities. This is true but governed by Insolvency Act 1986 not Salomon.

The sale of a business to a company owned by the vendor of the business will be a legal nullity if the sale made no change in the business’ commercial position. This is untrue. This is essentially what Mr Salomon did and it was valid.