Piercing the corporate veil: Prest v Petrodel Corp  UKSC 34
VTB Capital plc v Nutritek International Corp and others  UKSC 5  2 WLR 398 assumed that a doctrine permitting piercing of the corporate veil of a company existed, but decided that the doctrine could not permit a party to secure the imposition of a company’s contractual liability on those who controlled it.
Now the subject recurs a few weeks later in the decision of the UK Supreme Court on the matrimonial affairs of Mr and Mrs Prest, and the involvement of the companies controlled by Mr Prest. The companies owned the legal title to a substantial property portfolio. The trial judge in family proceedings ordered the transfer of some of those properties by Mr Prest to his wife in satisfaction of a lump-sum order. The Court of Appeal by a majority held that he had no power to do so.
Lord Sumption defined the bases on which the judge might have acted as (i) a power in the court to disregard the ownership of the properties by the companies; (ii) a power conferred by statute (the Matrimonial Causes Act 1973) to effect the transfers; and (iii) a finding that the companies were not, but the husband was, the beneficial owner of the properties…
If you are registered and logged in to the site, click on the link below to read the rest of the Ogier briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Ogier
News from The Lawyer
Briefings from Ogier
Of interest to trustees in relation to transfers from a non-Jersey trust to a Jersey trust.
Maternity leave, paternity leave and flexible working coming soon.