EN
TR
This doctrine is a kind of ‘safety valve’ to eliminate the injustice that the principles…
English courts have applied this doctrine in a consistent manner.(34)…
We do not accept as a matter of law that the court is entitled to lift the corporate veil as against a defendant company which is the member of a corporate group merely because the corporate structure has been used so as to ensure that the legal liability (if any) in respect of particular future activities of the group (and correspondingly the risk of enforcement of that liability) will fall on another member of the group rather than the defendant company. Whether or not this is desirable, the right to use a corporate structure in this manner is inherent in our corporate law.(35)…
So, the fact that a company incorporates a subsidiary and controls and manages it…
English company law possesses some curious features, which may generate curious results. A parent company may spawn a number of subsidiary companies all controlled directly or indirectly by the shareholders of the parent company. If one of the subsidiary companies, to change the metaphor, turns out to be the runt of the litter and declines into insolvency to the dismay of its creditors, the parent company and the other subsidiary companies map prosper to the joy of the shareholders without any liability for the debts of the insolvent subsidiary.(36)…
