... directors, shareholders, or other subsidiary companies; hence the concept of the corporate veil. Various attempts have been made to weaken or lift the veil, with the judiciary swinging from strictly applying the Salomon principle to taking a more interventionist approach to try to achieve justice in a particular situation. Group activities still cause problems and the courts have sometimes ignored the separate personality of companies within a group. Large corporate groups often operate as a multinational enterprise3 (MNE), that is, where a number of individually incorporated companies related to each other through common ownership and control4 are located in various jurisdictions.5 It is submitted that there are often very good reasons to sue a parent company rather than the subsidiary. Often the subsidiary has limited assets and offers little scope for recovery6. Even if the subsidiary is still available and has assets, or the parent corporation can be made directly accountable before ...

See this essay or coursework document in full right now