Piercing the corporate veil in cases of fraud: After Greymountain, is the law finally black and white?
Osborne, Eimear
Osborne, Eimear
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2023
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journal article
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Osborne, Eimear. (2023). Piercing the corporate veil in cases of fraud: After Greymountain, is the law finally black and white? University of Galway Law Review, 2.
Abstract
The separateness of the legal personality of a company from that of its members and directors is as fundamental to company law as the ‘neighbour principle’ is to negligence and fundamental rights are to constitutional law. It is an essential part of the fabric of corporate law in the common law world. Nonetheless, the veil of incorporation can sometimes yield to stronger forces and may, for example, be ‘lifted’ or ‘pierced’ by statute or by the courts in order to ensure greater accountability in the use of the corporate form. Powers v Greymountain Management Ltd (In Liquidation) (‘Greymountain’)1 is an important development in Irish company law and serves as a stark reminder to company directors that failure to understand their duties and to act in the interest of the company at all times can have severe personal repercussions. Greymountain has shifted Irish company law from the ‘grey’ position whereby it was unclear when courts might pierce the corporate veil and better aligns it with other common law jurisdictions. The decision confirms that in circumstances where limited liability or the corporate form is abused, no-one is above or beyond the law.
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University of Galway
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Attribution-NonCommercial-NoDerivatives 4.0 International