''Jones v Lipman''

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UK company law The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary legal ...

case concerning

piercing the corporate veil Piercing the corporate veil or lifting the corporate veil is a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders. Usually a corporation is treated as a separate legal person, which is so ...

. It exemplifies the principal case in which the veil will be lifted, that is, when a company is used as a "mere facade" concealing the "true facts", which essentially means it is formed to avoid a pre-existing obligation.

Facts

Mr Lipman contracted to sell a house at 3 Fairlawn Avenue,

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Ealing Ealing () is a district in West London, England, west of Charing Cross in the London Borough of Ealing. Ealing is the administrative centre of the borough and is identified as a major metropolitan centre in the London Plan. Ealing was histor ...

W4), to Mr Jones for £5,250. He changed his mind and refused to complete. To try to avoid a specific performance order, he conveyed it to a company formed for that purpose alone, which he alone owned and controlled.

Judgment

Russell J ordered specific performance against Mr Lipman and formed company.

Notes

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References

* United Kingdom company case law United Kingdom corporate personality case law High Court of Justice cases 1962 in case law 1962 in British law

Facts

Judgment

See also

Notes

References