Beyond the corporate veil

In this article, Jeb Clulow of Barlow Lyde & Gilbert explores the various means by which a party can pre-contract protect himself when dealing with a single asset company and post-contract pierce or otherwise avoid any corporate veil that lies between him and the assets that he seeks to attach.

In 1897, the House of Lords in Salomon v Salomon clearly established that a company is a legal entity distinct from its shareholders. Ever since that date, businessmen have asked their legal advisers the question: ‘If I have a claim against a company and it transpires that it has no assets, am I able to claim against another party which does have assets?’ This is a question that is particularly relevant in shipping and international trade transactions where single asset companies are common.