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17 October 2009 / Victoria Von Wachter
Issue: 7281 / Categories: Features , Employment
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The corporate veil

Victoria von Wachter explores how far courts will go to avoid lifting the corporate veil

Since the 19th century ruling in Salomon v Salomon [1874] AC 22 which stated companies were legal entities and a court had no business peering beneath the veil of incorporation to see what was happening there, the rule has been revisited and reinforced over the decades in cases such as Adams v Cape Industries plc [1990] 1 Ch 443, [1991] 1 All ER 929 and in the more recent past. However, the sanctity of the legal integrity and identity of companies has been protected with vigour by the courts which have a strong disinclination for anyone, let alone them, peering under the skirts of a company to examine its linen (dirty or otherwise). In Adams the Court of Appeal expressly declined to “pierce the veil of incorporation” even when it was alleged that the corporate structures with respect to a subsidiary had been created purely to place liability most advantageously for the parent company.

In Allen v Amalgamated Construction

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MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

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Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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