Abstract:
This article analyses the common law doctrine of piercing of the corporate veil in the context of tort liabilities of a company. It is generally accepted that the veil piercing doctrine can be applied where a company is used to evade existing legal obligations but not where a company is used to avoid future legal obligations. In the tort context, the prevailing view is that it is permissible to establish a company to carry on activities to enable the controllers of the company to escape personal tort liabilities arising from the activities. However, it is argued in this article that such a situation potentially involves the use (misuse) of a company to evade existing tort obligations and that there is greater scope than traditionally understood for piercing of the corporate veil to impose a company’s tort liabilities on its controllers.
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Stefan HC Lo, Piercing of the corporate veil for evasion of tort obligations, Common Law World Review, vol 46, issue 1, pp 42-60. First published date: March-02-2017. 10.1177/1473779516682195.
First posted 2017-03-24 08:32:54
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