Piercing the Corporate Veil Essay -- Papers

Piercing the Corporate Veil Since the establishment in Salomon v Salomon, the describe legal personality has been long recognised in English law of nature for centuries, that is to say, a limited liability company has its own legal indistinguishability distinct from its shareholders or directors. However, in certain circumstances the courts may be prepared to look behind the company at the actions of the directors and shareholders. This is known as penetrating the corporate veil. There are numerous cases concerning the piercing the corporate veil, among which, Jones v Lipman1 was a typical case. Lipman sold knowledge domain to Jones by a written contract but refused to complete the bargain because of another good deal, instead he wrap upered damages for breach of contract. To come out the house out of reach of Jones, he bought a company off the shelf and conveyed the house to it. In an action against Lipman and the company, the court granted the s pecialized performance and ruled that the defendant company is the creature of the first defendant, a device and ...