CORPORATE PERSONALITY AND LEGAL STATUS: AN ANALYSIS OF SEPARATE LEGAL PERSONALITY AND THE LIFTING OF THE CORPORATE VEIL
DOI:
https://doi.org/10.5281/zenodo.15354289Abstract
This thesis explores the principle of separate legal personality in corporate law and the limited circumstances under which courts may lift the corporate veil. Rooted in the landmark case Salomon v A Salomon & Co Ltd [1897], the doctrine treats a company as a distinct legal entity, offering protection to shareholders and encouraging investment. However, this legal separation can also be misused to avoid liability or conceal wrongdoing. Using a doctrinal research approach, the study examines key legal sources including statutes, judicial decisions, and academic literature. Special focus is given to recent cases such as Prest v Petrodel Resources Ltd [2013] and Sevilleja v Marex Financial Ltd [2020], which have redefined the boundaries for veil-piercing in the UK. The findings reveal that courts remain cautious and restrict intervention to cases of legal evasion, prioritising legal certainty over broader notions of fairness.
References
Companies Act 2006 (UK).
Farrar, J. (2020). Corporate Governance: Theories, Principles and Practice. 5th ed. Oxford University Press.
Gilford Motor Co Ltd v Horne [1933] Ch 935.
House of Commons and Grenfell Inquiry. (2022). Phase 2 Report: Corporate Structures and Accountability. [online] Available at: https://www.gov.uk/government/publications/grenfell-tower-inquiry-phase-2
Jones v Lipman [1962] 1 WLR 832.
Kraakman, R., Armour, J., Hansmann, H., et al. (2017). The Anatomy of Corporate Law: A Comparative and Functional Approach. 3rd ed. Oxford University Press.
OECD. (2021). Beneficial Ownership Transparency Toolkit. [online] Available at: https://www.oecd.org/corruption/beneficial-ownership-transparency
Prest v Petrodel Resources Ltd [2013] UKSC 34.
Salomon v A Salomon & Co Ltd [1897] AC 22.
Sevilleja v Marex Financial Ltd [2020] UKSC 31.
Thompson, R.B. (1991). Piercing the Corporate Veil: An Empirical Study. Cornell Law Review, 76(5), pp.1036โ1074.
Kraakman, R., Armour, J., Hansmann, H., et al. (2017). The Anatomy of Corporate Law: A Comparative and Functional Approach. 3rd ed. Oxford: Oxford University Press.
OECD (2021). Beneficial Ownership Transparency Toolkit. [online] Available at: https://www.oecd.org/corruption/beneficial-ownership-transparency
Salomon v A Salomon & Co Ltd [1897] AC 22.
Prest v Petrodel Resources Ltd [2013] UKSC 34.
Sevilleja v Marex Financial Ltd [2020] UKSC 31.
