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Posted: March 10th, 2025
*CORPORATE PERSONALITY/LIFTING THE CORPORATE VEIL*
Question description
Analyse the following events in terms of the doctrine of incorporation and
the situations in which the veil of incorporation is lifted.
(i) Alpha Ltd and Beta Ltd are wholly owned subsidiaries of Gamma plc. The
boards of directors of both subsidiaries are appointed by Gamma plc. Gamma
plc has agreed to sell a piece of land to Omega plc. There is a legally
binding contract for this sale. However, Gamma plc has just received a
better offer for the land and wishes to escape its obligation to Omega plc.
Accordingly, Gamma plc transfers the land to Beta Ltd. Omega plc has
commenced legal proceedings against Gamma plc and Beta Ltd for the specific
performance of the original contract of sale.
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