Question: In what circumstances may the veil of incorporation be lifted at common law?
Answer: In the past, the corporate veil has been lifted where a group of companies have been viewed as a single economic entity. This argument was raised successfully in the case of D. H. N Food Distributors Ltd v Tower Hamlets London Borough Council [1976] 1 WLR 852. In this case, the Court of Appeal were prepared to treat the companies in a group as one economic entity; thereby, allowing the parent company to claim compensation for both loss of land and disturbance to business following a compulsory purchase order on land owned by a subsidiary.......(short extract)
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Details: - Mark: 64% | Course: Company Law | Year: 1st | Words: 565 | References: No | Date written: Not available | Date submitted: April 05, 2011 | Coursework ID: 668
