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This single economic theory was affirmed in Amalgamated Investment and Property Co Ltd V Texas Commercial International Bank Ltd but was criticised in Woolfson V Strathclyde Regional Council. Cases & Articles Tagged Under: Woolfson v Strathclyde Regional Council [1978] UKHL 5 | Page 1 of 1 Prest v Petrodel Resources Ltd & ors [2013] UKSC 34 WTLR Issue: September 2013 #132 Lee v Lee’s Air Farming Ltd [1960] UKPC 33 is a company law case from New Zealand, also important for UK company law and Indian Companies Act 2013, concerning the corporate veil and separate legal personality. Mr Woolfson had 999 shares in Campbell Ltd and his wife the other. a sufficient interest in the land to found a claim to compensation for disturbance and (3) (per Goff and Shaw LL.J.) Woolfson cannot be treated as beneficially entitled to the whole shareholding in Campbell, since it is not found that the One share in Campbell held by his wife is held as his nominee. The Judicial Committee of the Privy Council reasserted that a company is a separate legal entity, so that a director could still be under a contract of employment with the company he solely owned. This disturbance has to be beyond what a reasonable person can be expected to tolerate. Im Biblisch-Ebraïschen und Nordwestsemitischen J. Krasovec No preview available - 1977. A bridal clothing shop at 53-61 St George’s Road was compulsorily purchased by the Glasgow Corporation. A similar comment was made by Slade LJ in Adams v Cape Industrial Plc [1990] CH 433, … R&B Customs Brokers Co. Ltd. v. United Dominions Trust Ltd. [1987] EWCA Civ 3 is an English contract law case, concerning unfair terms under the Unfair Contract Terms Act 1977. (H.L.) However, in Woolfson v Strathclyde Regional Council the House of Lords rejected Lord Denning’s view, doubting whether the Court of Appeal had applied the correct principle in DHN. Macaura v Northern Assurance Co Ltd [1925] AC 619 appeared before the House of Lords concerning the principle of lifting the corporate veil. that in the circumstances Bronze held the legal title to the premises in trust for D.H.N., which also sufficed to entitle D.H.N. Woolfson cannot be treated as beneficially entitled to the whole share-holding in Campbell, since it is not found that the one share in Campbell held by his wife is held as his nominee. Strathclyde Regional Council Strathclyde Regional Council alleged that the way Mrs Porcelli had been treated was not because of or on the grounds of her sex. However, the House of Lords ruled that Woolfson and its subsidiary were not a single economic unit due to operational practices. But however that may be, I consider the D.H.N. Butt v Kelson [1952] Ch 197 is a UK company law and English trusts law case concerning the right of a beneficiary to direct its trustees to exercise votes on company shares that the trust possesses. Der Merismus. Vincent. 8 Woolfson v Strathclyde Regional Council [1978] SC 90 (HL) at 96. They had twenty and ten shares respecti… Therefore the more fact that the case is one which falls within Salomon v Salomon & Co. is not of itself conclusive.’ It seems therefore to be a question of fact in each case, and those cases indicate that the question is whether the subsidiary was carrying on the business as the company’s business or as its own. acknowledged by Lord Keith of Kinkel in Woolfson v Strathclyde Regional Council 1978 S.C. 2 (HL) 90, where he commented at page 96 that “it is appropriate to pierce the corporate veil only where special circumstances exist indicating that it is a mere facade concealing the true facts”. Lords Wilberforce, Fraser and Russell and Dundy concurred. It was maintained before this House that the conclusion of the Lord Justice-Clerk was erroneous. 27 and Meyer v Scottish Co-operative Wholesale Society Ltd 1958 S.C. It was held by the Court of Appeal (Lord Denning M.R., Goff and Shaw LL. To set a reading intention, click through to any list item, and look for the panel on the left hand side: About Legal Case Notes. The effect of the House of Lords' unanimous ruling was to uphold firmly the doctrine of corporate personality, as set out in the Companies Act 1862, so that creditors of an insolvent company could not sue the company's shareholders to pay up outstanding debts owed. The third company, also a wholly owned subsidiary of D.H.N., owned as its only asset the vehicles used in the grocery business, and it too carried on no operations. Case Law • Ministry of Defence v Jeremiah [1979] IRLR 436. Commentators also note that the DHN case is self-contradictory. Mr Woolfson had 999 shares in Campbell Ltd and his wife the other. Nuisance occurs when another uses their property in a way that disturbs another persons enjoyment of their own property. … 2 4) Legal Arguments Mrs Porcelli Mrs Porcelli argued that her employer had discriminated against her and violated s. 6(2)(b)of the Sex Discrimination Act 1975. Lazarus Estates Ltd v Beasley [1956] 1 QB 702 Prest v Petrodel Resources Ltd UKSC 34, [2013] R v McDowell [2015] EWCA Crim 173 R v Singh [2015] EWCA Crim 173 Salomon v Salomon [1896] UKHL 1 Trustor AB v Smallbone (No 2) [2001] EWHC 703 VTB Capital plc v Nutritek International Corp [2013] UKSC 5 Woolfson v Strathclyde Regional Council [1978] UKHL 5 4. Woolfson v Strathclyde Regional Council [1978] UKHL 5 is a UK company law case concerning piercing the corporate veil. Distributors Ltd b London Borough of Towers Hamlets (1976). In Antonio Gramsci Shipping Corp and others v Stepanovs, the High Court permitted the veil of incorporation to be pierced to permit the claimants to seek to enforce an agreement against … Could only be pierced where there were special circumstances which indicated the veil is a mere facade concealing the true facts. The Land Tribunal denied it on the basis that Campbell Ltd was the sole occupier. Further, the decisions of this House in Caddies v Harold Holdsworth & Co (Wake-field) Ltd 1955 S.C. Woolfson v Strathclyde Corp [1978] Uncategorized Legal Case Notes August 5, 2018 May 28, 2019. They had twenty and ten shares respectively in Solfred Ltd. Mr Woolfson and Solfred Ltd claimed compensation together for loss of business after the compulsory purchase, arguing that this situation was analogous to the case of DHN v Tower Hamlets LBC . HELP. Tunstall v Steigmann [1962] 2 QB 593, at 602; Woolfson v Strathclyde Regional Council 1978 SC (HL) 90, at 96. facts (impropriety)21 can the veil be pierced according to Woolfson v Strathclyde Regional Council.22 In Gencor ACP Ltd v Dalby (Gencor)23 and Trustor AB v Smallbone (No.2) (Trustor),24 both cases held that the corporate veil was pierced on the basis that the companies were ‘used 25as a façade to conceal the true facts’. Woolfson v Strathclyde Regional Council (1978): This was similar to DHN v Tower Hamlets. It was a case on all fours with DHN Food … However, over time, the liberal approach applied in DHN has been less popular. Commentators also note that the DHN case is self-contradictory. However this approach was subsequently criticised in Woolfson v Strathclyde Regional Council [1978] SC (HL) 90, making the point that the Court of Appeal in DHN had made no mention of the principle that the veil would only be pierced “where special circumstances exist indicating that [the company] is a mere façade concealing the true facts” (at 96). It gives an example of when courts will treat shareholders and a company as one, in a situation where a company is used as an instrument of fraud. Lord Keith's judgment dealt with DHN as follows. A bridal clothing shop at 53-61 St George’s Road was compulsorily purchased by the Glasgow Corporation. Mrs Prest appealed. Bank of Tokyo Ltd v Karoon [1987] AC 45n is a conflict of laws case, which also relates to UK company law and piercing the corporate veil. In a Scottish case after SOGA was passed, Archivent Sales & Development Ltd. v Strathclyde Regional Council 1985 S.L.T. If the corporations are engaged in entirely different businesses, the group is called a conglomerate. P alleged that they conducted a campaign of … The case contains an impressive analysis of the case law ... 11 Woolfson v Strathclyde Regional Council 1978 SC(HL) 90 at p.96 12 Gilford Motor Co Ltd v Horne [1933] Ch 935. lon_lib1\9607989\1 4 9 October 2013 legga an individual agreeing to sell a property to a third party but seeking to frustrate the sale Case referred to: Ministry of Defence v ... of the opinion of the Employment Appeal Tribunal there is no dispute between the parties in this appeal by Strathclyde Regional Council that the question for us is whether the decision of the Industrial Tribunal proceeded upon a failure correctly to understand, or to apply to the facts which they found, the provisions of s.1(1)(a) of the Act. Woolfson v Strathclyde Regional Council [1978] UKHL 5 Lazarus Estates Ltd v Beasley [1956] 1 QB 702 Ibid Prest– Lord Sumption [16] Woolfson v Strathclyde Regional Council [1978] UKHL 5 Paragraph 90 lord Ketih Prest [103] Lord Clarke Jones v Lipman Trustor AB v Smallbone (No 2) [2001] EWHC 703 Ibid Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary legal vehicle to organise and run business. Ord v Bellhaven Pubs Ltd [1998] 2 BCLC 447 A suffered injuries through exposure to asbestos dust and wanted to sue. Lord Keith in Woolfson cast doubts on whether the Court of Appeal in D H N had properly applied the principle that: ". Just want to know how widely known it is outside Scotland. In my opinion the conclusion was correct, and I regard as unimpeachable the process of reasoning by which it was reached. The United Kingdom company law regulates corporations formed under the Companies Act 2006. Woolfson v Strathclyde Regional Council (February 1978) 33 3.7.3 Attempting to stem the tide: Amalgamated Investment and Lewis Trusts 35 3.8 The screw tightens: Multinational, Dimbleby, Pinn & Wheeler 36 3.8.1 Multinational Gas and Petroleum Co v Multinational Gas … Usually a corporation is treated as a separate legal person, which is solely responsible for the debts it incurs and the sole beneficiary of the credit it is owed. The parent company, D.H.N., carried on the business in the premises which were the subject of compulsory purchase. facts (company is a “sham”): Woolfson v Strathclyde Regional Council; Toptrans Ltd v Delta Resources Co Inc [3.026] – Evasion of existing legal obligations (see … Woolfson v Strathclyde Regional Council UKHL 5 is a UK company law case concerning piercing the corporate veil. 8. Court: House of Lords: Docket Number: No. The appellants’ argument before the lands carried on in the premises was truly that of … Facts. In Woolfson v Strathclyde Regional Council, the House of Lords disapproved of Denning’s comments and said that the corporate veil would be upheld unless the company was a façade. Strathclyde Regional Council v Porcelli [1986] IRLR 134 1) Reference Details Jurisdiction: United Kingdom of Great Britain and Northern Ireland, Scottish Court of Session Date of Decision: 31 January 1986 Case Status: Concluded 2) Facts Mrs Porcelli was a … What people are saying - Write a review We haven't found any reviews in the usual places. On the King's behalf, the Lord Chancellor developed a parallel justice system in the Court of Chancery, commonly referred as equity. The only case in that connection in the House of Lords, or Supreme Court, to which we were referred, was Woolfson v Strathclyde Regional Council 1978 SLT 159, a case … Legal Case Notes is the leading database of case notes from the courts of England & Wales. Woolfson v Strathclyde Regional Council [1978] UKHL 5 is a UK company law case concerning piercing the corporate veil. Adams v Cape Industries plc and Another (1991) A worked for a US subsidiary of CI, which marketed asbestos in the US. Ord & Another v Belhaven Pubs Ltd, [1998] 2 BCLC 447. The DHN case approach has become less popular since then. Keywords: sex discrimination, harassment, less favourable treatment. As a conclusion, the notion of separate legal personality remains to this day an important feature of Note that since this case was based in Scotland, different law applied. 9 VTB Capital plc v Nutritek International Corp [2013] UKSC 5, [2013] 2 AC 337 at [124]. It is also described as ‘piercing’, ‘lifting’, ‘penetrating’, ‘peeping’ or ‘parting’ the veil of incorporation. Allen v Gold Reefs of West Africa Ltd [1900] 1 Ch 656 is a UK company law case concerning alteration of a company's articles of association. The position there was that compensation for disturbance was claimed by a group of three limited companies associated in a wholesale grocery business. Adam v Cape Industries Plc, [1990] Ch 433. Woolfson v. Strathclyde Regional Council (1978) ALT 159. Caparo Industries PLC v Dickman[1990] UKHL 2 is a leading English tort law case on the test for a duty of care. The veil of incorporation is thus said to be lifted. The leading case is Cape Industries. WOOLFSON v. STRATHCLYDE REGIONAL COUNCIL ... A special case was at their request stated for the opinion of the Court of Session, and on 3 December 1976 the Second Division (Lord Justice-Clerk Wheatley. Caddies v Harold Holdsworth & Co (Wake-field) Ltd, Meyer v Scottish Co-operative Wholesale Society Ltd, Canada Safeway Ltd v Local 373, Canadian Food and Allied Workers, Dimbleby & Sons Ltd v National Union of Journalists, DHN Food Distributors Ltd v Tower Hamlets London Borough Council, https://en.wikipedia.org/w/index.php?title=Woolfson_v_Strathclyde_Regional_Council&oldid=637556370, United Kingdom corporate personality case law, Creative Commons Attribution-ShareAlike License, Lord Keith, Lord Wilberforce, Lord Fraser and Lord Russell, This page was last edited on 11 December 2014, at 01:15. 5 minutes know interesting legal mattersWoolfson v Strathclyde Regional Council [1978] 2 EGLR 19 (HL) (UK Caselaw) We haven't found any reviews in the usual places. In Woolfson v Strathclyde Regional Council 1978 SGT159, the D H N Case was distinguished essentially because the property owner in Woolfson was not a wholly-owned subsidiary. Here the three subsidiary companies were treated as a part of the same economic entity or group and were entitled to compensation. W… Piercing the corporate veil: a new era post Prest v PetrodelThat a company has a separate legal personality from its shareholders is a well-established common law rule, derived initially from the case of Salomon v A Salomon [1897] AC 22 and reiterated in more recent authorities such as Adams v Cape Industries [1990] Ch 433 . An influential model within Europe, the Commonwealth and as an international standard setter, UK law has always given people broad freedom to design the internal company rules, so long as the mandatory minimum rights of investors under its legislation are complied with. There the company that owned the land was the wholly owned subsidiary of the company that carried on the business. J.) Unusually, the request to do so was in this case made by the corporation's owner. A bridal clothing shop at 53-61 St George’s Road was compulsorily purchased by the Glasgow Corporation. Acronyms are listed under A in the A to Z. SPFOnline. A mere facade. Porcelli v Strathclyde Regional Council [1986] ICR 564 is a UK labour law case concerning sex discrimination. . The grounds for the decision were (1) that since D.H.N. Woolfson v. Strathclyde Regional Council [1978] SLT 159 ; Adams v Cape Industries plc [1991] 1 ALL ER 929; Stocznia Gdanska SA v Latvian Shipping Co (Repudiation) [2002] EWCA Civ 889; [2002] 2 All E.R. Prest v Petrodel Resources Ltd & ors [2013] UKSC 34. Historically, trusts were mostly used where people left money in a will, created family settlements, created charities, or some types of business venture. The council employed three laboratory technicians, who were all female and included E, the applicant, at one of their schools. The case also addressed long-standing issues under the English conflict of laws as to when a company would be resident in a foreign jurisdiction such that the English courts would recognise the foreign court's jurisdiction over the company. Is it taught elsewhere? In my opinion the conclusion was correct, and I regard as unimpeachable the process of reasoning by which it was reached. The basis of this argument is that despite the separate legal personalities of the companies within the group, they in fact constitute a single unit for economic purposes and should therefore be seen as one legal unit. The case also addressed long-standing issues under the English conflict of laws as to when a company would be resident in a foreign jurisdiction such that the English courts would recognise the foreign court's jurisdiction over the company. It held that alterations could not be interfered with by the court unless a change was made that was bona fide for the benefit of the company as a whole. Salomon v A Salomon & Co Ltd[1896] UKHL 1, [1897] AC 22 is a landmark UK company law case. and the premises were its only asset. Re Vandervell Trustees Ltd [1974] EWCA Civ 7 is a leading English trusts law case, concerning resulting trusts. Provides topic based information written in QA format. (H.L.) Woolfson v Strathclyde Regional Council [1978] UKHL 5 is a UK company law case concerning piercing the corporate veil. English trust law concerns the creation and protection of asset funds, which are usually held by one party for another's benefit. Judgment Session Cases Scots Law Times Cited authorities 10 Cited in 80 Precedent Map Related. Lord Keith's judgment dealt with DHN as follows. But the shop itself, though all on one floor, was composed of different units of property. 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