... personality. DHN Food Distribution v Tower Hamlets LBC5 It was held that a group of companies was a single economic unit, thus enabling the group to claim compensation on the compulsory purchase of land even though the land from which the business was operated was owned by a subsidiary and the business was operated by the parent company. Fraud/ façade A company's separate legal personality will be ignored where the company has been used to avoid liability or to gain an illegitimate benefit.6 Woolfson v Strathclyde Regional Council7- disapproved DHN. This case was similar to DHN but it disapproved the decision made. The Salomon rule was applied and it was held that there is no general principle for the courts to lift the veil. A single economic entity can be found where (1) a statutory provision allows (2) a term in a contract allows. In Jones v Lipman8 the veil was lifted on the basis that ...

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