when to lift the veil:
1.
IA 1986, s.213 - fraudulent trading provision. If in the course of winding up the company, anyone carried business intending to defraud the creditors could be called upon to contribute to the debts of the company. (Re Todd)
Re Patrick Lyon - definition: actual dishonesty.
Too difficult to satisfy the criminal burden.
s.214 is introduced to solve this problem: negligence rather than intend to defraud.
Point of no return - a reasonable director would stop trading at this time. Court might lift the veil - the director might be personally liable for the debt (Re Produce Marketing Consortium)
2.Judicial veil lifting -
Gilford Motor Company v Horne,
Jones v Lipman (the company was merely in front for the defendent)
DHN v Tower Hamlets - Denning.
Woolfson v Strathclyde disapproved Denning
wholly owned subsidiaries - Z owns all the issued share capital of A,B,C. In realities there is just one business but organised through 4 separate legal personalities.
Adams v Cape Industries - Cape market abestos, also has a US marketing subsidiary.
Creasey v Breachwood Motors -
