• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

In what circumstances may the veil of incorporation be lifted at common law?

Page
  1. 1
    1
  2. 2
    2
  • Essay length: 587 words
  • Submitted: 11/02/2004
Share this essay:
University Degree English Legal System

The first 200 words of this essay...

Company Law

In what circumstances may the veil of incorporation be lifted at common law?

Discuss

The 1897 case of Salomon v Salomon & Co Ltd [1897] AC 22 firmly established the principle that a company has a separate legal identity to that of its members. These separate legal identities are protected by the veil of incorporation, which can only be disregarded by the courts in particular circumstances.

The established situation where the court will lift the veil of incorporation is where a company has been formed to avoid legal obligations. For example, in Jones v Lipman [1962] 1 All ER 442, land was sold to a newly formed company to avoid an order for specific performance that would otherwise have been made against an individual. In this case, the court made an order for specific performance against both the individual and the company. In Gilford Motor Co v Horne [1933] Ch 935 CA, the court granted an injunction against both Mr Horne and a company he had formed to avoid a restriction in an employment contract.

The corporate veil has also been lifted where a subsidiary has been found an agent of its

Read more
The above preview is unformatted text

Found what you're looking for?

  • Start learning 29% faster today
  • Over 150,000 essays available
  • Just £6.99 a month

  • "
    As a resource, these essays provide excellent reference for subjects.....particularly those with bibliographies give great extended reading too.
    "
    Sarah. Sociology, Politics, Economics, Psychology. University Student.
  • "
    This is the most useful website I have ever used to gain information and ideas for my college work, and thanks to the site I have achieved distinctions in most of my coursework.
    "
    Nikolay. Business Studies. BTEC Student.

Marked by a teacher

This essay has been marked by one of our great teachers. You can read the full teachers notes when you download the essay.

Peer reviewed

This essay has been reviewed by one of our specialist student essay reviewing squad. Read the full review on the essay page.

Peer reviewed

This essay has been reviewed by one of our specialist student essay reviewing squad. Read the full review under the essay preview on this page.