Piercing the corporate veil in australia

Piercing the veil on corporate groups in australia: the case for reform helen anderson [many large-scale businesses are conducted through the form of corporate groups, each company being a separate legal entity enjoying limited liability this can create problems for those dealing with corporate group companies. While australia has long adopted the corporate veil piercing doctrine from the uk model, china has only recently enacted veil piercing provisions in 2006 this thesis compares australia’s long standing veil piercing doctrine and china’s recent veil piercing enactment to determine which jurisdiction provides better veil piercing laws in protecting creditors’ interests.

piercing the corporate veil in australia Piercing the corporate veil is a term that is commonly used in corporate law to refer to cases in which the limited liability of the corporation becomes unlimited to be able to impose certain responsibilities either to the particular corporation or to the shareholders of a corporation.

Piercing the corporate veil in favour of creditors and pooling of groups - a comparative study abstract i am pleased to contribute to this special issue in memory of my friend, dr john kearney qc. There has been a significant amount of literature by commentators discussing the doctrine of piercing the corporate veil however, there has not been a comprehensive empirical study of the australian cases relating to this doctrine in this article, the authors present the results of the first such study. With the exception of lords mance and walker (who respectively referred to piercing the corporate veil as a metaphor or label rather than a doctrine), the law lords broadly agreed that the law was incoherent and unclear but considered that it was a doctrine under english law.

1 j h farrar, ‘doctrinal incoherence and complex variables in piercing the corporate veil cases’ (2014) 29 australian journal of corporate law 23 2 see eg n coburn, coburn’s insolvent trading (lawbook co, 2 nd ed, 2003) ch 2.

Piercing the veil a court in particular circumstances can pierce the corporate veil, meaning creditors and other third parties can access the assets of its directors or members in a corporate group, creditors can potentially access the assets of a subsidiary’s parent company. In conducting the research for their paper, which is titled “ the three justifications for piercing the corporate veil,” macey and mitts performed a sophisticated data analysis on more than 9,000 opinions in search of instances where plaintiffs succeeding in uncovering the owners behind a corporate form.

There has been a significant amount of literature by commentators discussing the doctrine of piercing the corporate veil however, there has not been a comprehensive empirical study of the australian cases relating to this doctrine. Corporate veil to reveal those who control the company6 there is an increasing literature by australian commentators on piercing the corporate veil however, there has not been a comprehensive empirical study of the australian cases relating to piercing the corporate veil in this article, we present the results of the first such study. (2001) 19 company and securities law journal piercing the corporate veil in australia ian m ramsay harold ford professor of commercial law and director, centre for corporate law and securities.

Piercing the corporate veil in australia

Piercing the corporate veil in favour of creditors and pooling of groups 33 liability for insolvent trading by directors new zealand has vested in the courts powers to make contribution and pooling orders,16 and ireland has followed suit17 the uk did not adopt these reforms.

  • Piercing the corporate veil typically is most effective with smaller privately held business entities (close corporations) in which the corporation has a small number of shareholders, limited assets, and recognition of separateness of the corporation from its shareholders would promote fraud or an inequitable result.
  • For example, veil piercing may be done where the corporation is the mere “alter-ego” of its shareholders, where the corporation is undercapitalized, where there is a failure to observe corporate formalities, where the corporate form is used to promote fraud, injustice or illegalities.
piercing the corporate veil in australia Piercing the corporate veil is a term that is commonly used in corporate law to refer to cases in which the limited liability of the corporation becomes unlimited to be able to impose certain responsibilities either to the particular corporation or to the shareholders of a corporation. piercing the corporate veil in australia Piercing the corporate veil is a term that is commonly used in corporate law to refer to cases in which the limited liability of the corporation becomes unlimited to be able to impose certain responsibilities either to the particular corporation or to the shareholders of a corporation. piercing the corporate veil in australia Piercing the corporate veil is a term that is commonly used in corporate law to refer to cases in which the limited liability of the corporation becomes unlimited to be able to impose certain responsibilities either to the particular corporation or to the shareholders of a corporation.
Piercing the corporate veil in australia
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2018.