The Corporate Veil in Business & Insolvency - Rights, Risks & Liability

Introduction

The corporate veil is the term used for the imaginary barrier that separates a registered company from the people who own it (the members) and from the people who manage it (the directors). This barrier, which exists solely because company law provides for it, means that the company is normally responsible for its own debts and its own actions. This supports commercial activity, but it can also be exploited by fraudsters.

On rare occasions, the courts will pierce this barrier, or veil, particularly where the protection it provides is being abused. In such cases, the members or directors may become responsible for the company’s debts or actions. However, the courts are generally reluctant to take this step.

Instead, the courts usually look for alternative legal routes to impose liability on members or directors without formally piercing the corporate veil. Depending on the circumstances, members or directors may become liable to the company’s creditors, and in some situations, to the company itself.

This webinar explains, on a practical basis, how a company can legitimately be used in business to avoid personal liability, and the point at which that protection may cease, particularly following insolvency. It also outlines how to minimise the risks associated with dealing with a company.

This remains a well known and challenging area of company law and one that anyone involved in business or legal practice needs to understand.

What You Will Learn

This webinar will include a discussion on the following key cases:

• Salomon v A. Salomon and Co Ltd[1896]
• Prest v Petrodel Resources Ltd [2013]
• Wright v Chappell [2024]

This pre-recorded webinar will be available to view from Thursday 28th May 2026

Alternatively, you can gain access to this webinar and 2,300+ others via the MBL Webinar Subscription. Please email webinarsubscription@mblseminars.com for more details.