- In the light of Petrodel Resources Ltd v Prest, on what ground(s) will the courts be prepared to pierce the veil?
- Why have the courts been reluctant to lift/pierce the corporate veil?
- What powers do shareholders have to make decisions within a company and how do they make those decisions?
- Discuss how changes can be made to a company’s articles of association. What are the limitations on or restrictions to amending the articles of association?
- ATT Plc is a company registered in the UK. Jack was employed as a rigger on the drilling platform of James Lawrence Plc (which is registered in South Africa), which was a subsidiary company of ATT Plc. Jack was injured by a failure by the directors of James Lawrence Plc to observe and implement the health and safety procedures recognised as standard best practice in the drilling industry and promoted publicly by James Lawrence Plc. Unfortunately for Jack, James Lawrence Plc is now insolvent and he wishes to know whether or not he has any chance of successfully suing its parent company, ATT Plc. ATT plc continues to be highly profitable company.
Advise Jack on the factors that would affect the outcome of his legal action.
- The contract created by the company’s constitution is very unusual, but being able to enforce the constitution is a powerful source of protection for shareholders.