Sham corporate structures – the English courts’approach

The recent case of Kensington International Ltd v Republic Of Congo and others [2005] EWHC 2684 (Comm) highlights the willingness of the English courts to look behind sham corporate structures when a defendant (even a defendant state) attempts to evade the rights of third parties against it, says Charlotte Butcher of Holman Fenwick & Willan.

Charlotte Butcher may be contacted on tel: +44 (0)20 7264 8464; email: charlotte.butcher@hfw.co.uk

Kensington International concerns an attempt by the Congolese government to avoid payment to creditors seeking to seize its oil assets by routing the sale of its oil through a number of intermediary special purpose companies (SPCs).