Lifting The Corporate Veil In Australia

Introduction
In Briggs, v James Hardie & Co Pty Ltd [1989] , Rogers CJ claimed that the notion whereby the somatic veil should be lifted wherever one fellowship exerts complete domination everywhere another company was overly simplistic. He also stated that the law overlooked the accompaniment that holding companies do contain complete potency over subsidies the majority of the time in reality. It is true that the plaintiffs proposition was too simplistic; the relationship of complete control between a parent company and a marcher should black market merely as the starting point of interrogative sentence when peering privy the embodied veil rather than the sole, deciding factor. bang-up the merged veil is a common law precept whereby the courts will set aside the separate legal entity doctrine in certain circumstances and impose liability of the participants behind an entity. The term control, as it used in this essay, concerns the readiness of an entity to dominate decision-making, directly or indirectly, in relation to the monetary and operating policies of another entity so a to enable that entity to operate with it as part of an economic unit in achieving the objectives of the unequivocal entity. To apply it as the only material factor would pervert the principles of separate entity theory and limited liability.



Instead, there must be a common, unified set of principles governing the removal of the bodied veil, not premised upon mere domination. The current legal treatment of corporate groups by the Australian legal system is not assume in light of the complex corporate transactions which have evolved into everyday business practises in the century since Salomons object lesson (Salomon v Salomon & Co [1897]) was decided (insert footnote with HC definition of corporate groups). For the sake of brevity, this essay will look only at lifting the corporate veil where a subsidiary is wholly-owned, without minority shareholders.
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